While we have often heard that members of Congress, who are not only exempt from insider trading oversight, are also ardent daytraders we had never seen it in action.
Until now.
The following publicly filed monthly Periodic Transaction Report by Democrat Congresswoman, Judy Chu, shows us just how pervasive daytrading is not only for algos, but for those who supposedly are paid to serve their constituents. What is interesting is the size of the trades – between $1,000 and $15,000 each, this is not some novice, penny pincher; what is even more interesting are the underlying securities of choice: volatile, and levered, calls and puts on not only the S&P500, but also on some of the most volatile securities out there, such as the VIX.
Here are some examples of the trades in question (the latest full report can be found here):
There are more of these. Much more: some 9 pages worth just for June. The full breakdown is at the bottom of the post (link here).
While we would be the last to begrudge Ms. Chu her daytrading largesse, whether or not in possession of material, non-public inside info at time of trading – after all, if it is legal, by all means trade on inside information – something did catch our interest.
According to her public profile, the Democrat representing the 27th Congressional District, taught psychology for 20 years in an East LA Community College system, from 1981 to 2001,and reported a pension worth between $100,001 and $250,000 for those years of work. She also draws a smaller pension from serving on the Monterey Park City Council. She became a member of Congress in 2009. – READ MORE
