Microsoft Stocks Under Scrutiny: Congressman's $40 Million Trade Raises Concerns

Microsoft Stocks and Ethics in Finance

U.S. Congress member Josh Gottheimer from New Jersey recently reported a series of transactions in Microsoft (NASDAQ: MSFT) stock options, amounting to $40 million. This disclosure was made on January 14, 2025, with trades occurring in December 2024, each ranging from $1,000,001 to $5,000,000. As of press time, MSFT shares were at $425, up 2% since the last market close. This sudden shift in stocks highlights concerns in finance regarding potential conflicts of interest.

Call Options: A Controversial Strategy

The transactions involved call options, which allow the buyer the right to purchase stocks at a set price by a particular date. This tactic is frequently used for speculation or hedging against losses. Notably, Gottheimer previously dealt with Microsoft stocks in early December, valued at around $6 million, underlining a strategy that has seen a rise among Congress members.

Investing Trends in Politics

In recent months, scrutiny has increased regarding the legitimacy of lawmakers trading stocks. Historical data indicates a sharp rise in the number of trades by politicians utilizing call options. Gottheimer's recent trades, along with his significant gains from investments, have sparked debate on financial ethics in government contexts.

• Gottheimer’s other notable trades include Nvidia (NASDAQ: NVDA), Uber (NYSE: UBER), and Coca-Cola (NYSE: KO).
• He outsized returns have raised eyebrow, with a reported 29.09% return over 12 months.
• Bipartisan efforts are underway to regulate Congressional stock trading via the TRUST in Congress Act.