Suspicious stock trades happen all the time on Capitol Hill — no matter how fervently lawmakers deny it. The table certainly seems tilted. Members of congress have an informational edge over the general public, and disclosure and filing rules make sure that their trades don’t have to be reported promptly. On top of that, the exact amounts being traded remain unknown — as reporting is done in ranges.
It comes then, as little surprise, that legislators tend to outperform their constituents in terms of stock market returns by quite a fair margin. The issue has become much more publicized as of late — readers are likely familiar with the well-timed trades made by, for example, Nancy Pelosi, or Tommy Tuberville. As of late, even Marjorie Taylor Greene seems to be making all the right calls when it comes to investing in the stock market.
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In recent times, one representative stands out — Josh Gottheimer of New Jersey’s 5th congressional district. Two factors set him apart. For one, he’s the most active stock trader in congress, having executed transactions worth roughly $67 million in 2024 alone — in 2023, the figure was closer to $93 million. He has also outperformed both Pelosi and well-renowned hedge fund managers like Michael Burry.
Second, and perhaps more importantly, Gottheimer has a history of preternaturally well-timed trades. In September, he invested in a pharmaceutical company just a day before it announced a new drug application (NDA) with the U.S. Food and Drug Administration (FDA). This wasn’t the first instance of such a well-timed pharma trade either.
In November, the New Jersey congressman was particularly active — per data retrieved by Finbold’s congressional trading radar, he made a huge investment in a tech company worth at least $6 million.
Gottheimer goes all in on Microsoft stock
The representative’s latest trades were made public in a December 5 periodic transaction report from the Clerk of the House of Representatives. In true Gottheimer fashion, the report is a door stopper, detailing 37 transactions. Out of those 37, 31 were worth between $1,001 and $5,000 — the remaining 6, which were options trades, were worth between $1,000,001 and $5,000,000 each.
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In other words, Gottheimer invested between $6,000,006 and $30,000,000 through options — and all of it in a single company. That company is Microsoft (NASDAQ: MSFT).
At press time, a single MSFT share was trading at $441.02, with year-to-date (YTD) returns at 18.91%. However, this isn’t exactly a straightforward trade — and we’ll explain why.
Half of the transactions saw Gottheimer selling call options, while the other half saw him purchasing them. The calls he sold have an expiration date of September 19, 2025, and strike prices of $240 and $230. On the other hand, the calls he purchased have an earlier expiration date, June 20, 2025, and strike prices are more laddered — covering $240, $235, and $230.
The premiums collected from selling the call options generated instantaneous income for Gottheimer — if Microsoft stock price rises significantly by June 2025, the calls he purchased guarantee a profit on the overall trade.
However, if the price of MSFT stock exceeds the strike price of the calls the representative sold by September 2025, he would incur significant losses. In simple terms, Gottheimer is betting on moderate price movement — and is limiting his overall risk.
Featured image via Shutterstock
