Burry, famous for 'Big Short,' bought bearish options against S&P, Nasdaq 100 David Randall and Saqib Iqbal Ahmed - Reuters Michael Burry, the money manager made famous in the book and film "The Big Short," held bearish options against the broad S&P 500 and Nasdaq 100 Index at the end of the second quarter, according to securities fillings released on Monday. Burry's Scion Asset Management bought put options with a notional value of $739 million against the popular Invesco QQQ Trust ETF (QQQ.O) during the quarter, and separate put options with a notional value of $886 million against the SPDR S&P 500 ETF (SPY.P). Put options convey the right to sell shares at a fixed price in the future and are typically bought to express a bearish or defensive view. Burry rose to fame with his bets against the U.S. housing market before the 2008 financial crisis. /jlne.ws/3sfR0gS
Seems like Ackman's short Treasuries trade is a better bet. I'm surprised someone who went door to door to investment banks to buy CDS' is shorting the broad equity markets. I think shorting the AI winners is a better bet.
If the story that we were told in "The BIg Short" is true he struggled for a while until he managed to come out with a whopping 400% profit. So maybe is time to go against his bet for a short period, because that guy will be right, eventually.
Ostensibly index puts are among the cheapest they've ever been... underpriced almost by definition, especially when you consider the current monetary configuration & status of inflation.
It could be construed that he wanted notoriety. SPY and QQQ have a reporting requirement under section 13 - SPX and NDX doesn't come under section 13. Then again, he could have simply posted his holdings.
%% SO $793,000,000 notional value worth of puts on QQQ . QQQ has been closing below 50dma this week . QQQ= bearish on monthly candles ; 56% buy[46% sell on barchart.com] XOM sector is below 200dma, but a bit more of a sideway slop chop trend. NOTa stock tip or prediction