Former House Speaker and Rep. Nancy Pelosi (D-Calif), known for her active investing within Congress, recently disclosed the purchase of call options in chipmaker Broadcom Corp. (AVGO). This move comes at a time when the stock, after reaching a peak in mid-June, has entered a period of consolidation.
Technical analysts have identified a bullish pattern in Broadcom’s chart, suggesting a potential upward trend. TrendSpider, a trading platform, posted a daily chart of the stock on X (formerly Twitter) highlighting an inverse head-and-shoulders formation. This pattern is often associated with bullish reversals, indicating a possible shift from bearish to bullish sentiment.
Pelosi’s investment, made on June 24th, consists of 20 Broadcom call options with a strike price of $800 and an expiration date of June 20, 2025. These options were acquired after the company reported its second-quarter results on June 12th and announced a 10-for-1 stock split. The stock split adjusted the strike price of Pelosi’s options to $80.
The recent investment has piqued investor interest due to Pelosi’s reputation as a closely followed Congressional trader. Her financial disclosures, required by law, have led to the creation of tracking tools dedicated to monitoring her portfolio. The timing of her investment coincides with Broadcom’s upcoming third-quarter earnings announcement, scheduled for Thursday after market close.
Analysts are generally optimistic about Broadcom’s earnings prospects, citing the company’s exposure to the Artificial Intelligence (AI) sector and the strong performance of its peer, Marvell Technology, Inc. (MRVL). While Broadcom’s stock declined during the August 5th market slump, it has since rebounded.
Pelosi’s investment in Broadcom, coupled with the bullish technical signals and upcoming earnings report, has created a buzz among investors. As a prominent figure in politics and finance, her stock holdings often attract significant attention, potentially influencing market sentiment and investment decisions. Whether her investment will drive the stock higher remains to be seen, but it’s a development worth watching in the ever-changing world of tech investing.
