Michael Burry Disclosed Put Options Worth an Estimated $1.1 Billion Against Nvidia and Palantir Before Closing His Hedge Fund. Was That Bearish Bet Ahead of Its Time?
Key PointsMichael Burry has taken a strong stance against the high prices of some of the biggest AI stocks in the market.
Michael Burry, the man behind the infamous "Big Short" strategy, made a put option trade on tech stocks Nvidia and Palantir before shutting down his hedge fund. This trade, worth an estimated $1.1 billion, is reminiscent of his initial investments in subprime mortgage bonds in 2005. Despite the trade moving against him during its initial stages, Burry's foresight paid off as his prediction about the mortgage-bond crisis proved accurate, generating millions for his investors.
Now managing his own money and publishing a newsletter, Burry continues to hold those put options on Nvidia and Palantir, seeing them as overvalued in the current market. The question remains whether his bearish bet on these tech stocks will also turn out to be a profitable move.
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