Burry, famous for 'Big Short,' bought bearish options against S&P, Nasdaq 100

Discussion in 'Options' started by ETJ, Aug 15, 2023.

  1. qwerty11

    qwerty11

    I don't think it's true, as it all sounds way too simplistic...
     
    #31     Aug 15, 2023
  2. %%
    EVEN IF he posted it in real time \that may not help another trader;
    he had $107 million AUM to almost $ 2 Billion jump/in 2023.[Always double check any math, even round numbers]
    BUT , say we do+ have done some energy+ tech/INFO Tech trades;
    still could pick up some good confirmation, not that you would want to follow him blindly @ all.
    He under weighted energy sector a lot compared to SPY, QQQ related ;
    most anybody that has traded those 3, in 2023 knows why he did that.
    I used his 1st quarter data, 2023, but it's still helpful today; even @ 8-15-2023.
    Strange news, noticed @ noon , FOX News reported UBS pays $1.5 Billion fine on 2008 UBS mess.
    Good thing i did not read that UBS mess news 22 hours a go, markets went up yesterday. Down\ below 50dma today:D:D
     
    #32     Aug 15, 2023
    Drawdown Addict likes this.
  3. Overnight

    Overnight

    So how does this trade finally unwind? He held all those puts as of end of Q2. I am assuming he is going to exercise those options, so he is putting those ETF shares to the people who wrote those puts at the higher price? They collected the premium on those puts but will now be underwater on the shares they now own?
     
    #33     Aug 15, 2023
    murray t turtle likes this.
  4. cesfx

    cesfx

    If these puts are "in the money" (etf price under strike price) at expiration, yes, they would be exercised as they are in the money. The other side would have to cover the gain as they had a short option contract, correct.



    He doesn't have to excercise, he might sell them back to close position before expiry, roll, leg in into some other complex positions...
     
    #34     Aug 15, 2023
    murray t turtle likes this.
  5. ironchef

    ironchef

    Does trend following work in day trading?
     
    #35     Aug 16, 2023
    murray t turtle likes this.
  6. Specterx

    Specterx

    I looked up his fund, and assuming the public data is accurate his returns in recent years have been quite good. Seems to overlay stock picking with a Taleb-like strategy of betting on underpriced tail risks.
     
    #36     Aug 16, 2023
    Laissez Faire likes this.
  7. %%
    YES;
    if super selective\
    + size/wise. Not much or many points cutting all trend$ off @ 3:00CST
     
    #37     Aug 16, 2023
    ironchef likes this.
  8. ironchef

    ironchef

    Thanks. It is reassuring to hear.
     
    #38     Aug 16, 2023
    murray t turtle likes this.
  9. %%
    Good thing for me + trend following I dont own a watch @ all;
    computer clocks, calender$ , car clock, flip phone clock=FINE LOL.:D:D
    Ps I would not assume the ETF holders ''are underwater''
    even if they bought in 2023, they may have sold many of them, by now.
    Even a 7% loss , is nothing, if they took a bigger profit on 80%, or 95%.
    [GS, SCHW, Wolverine..... most likely bought QQQ @ inception1999...., even if that is not exactly right +it maybe right, sentence before that is true for some, Overnight-Cramer pic.]
     
    #39     Aug 17, 2023