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?
Michael Burry, known for predicting the 2008 financial crisis, held put options worth $1.1 billion against Nvidia (NVDA) and Palantir (PLTR) before closing his hedge fund. He disclosed 50,000 put options on Palantir with a notional value of $912 million and 10,000 puts on Nvidia with a notional value of $186,580. Burry has since sold his December-expiring puts but maintains short positions in both stocks and Palantir puts expiring in 2027. He believes Palantir is overvalued and Nvidia faces risk
How this was made
The 30-second read
Why it matters
The disclosure adds a new data point on institutional sentiment toward Palantir and Nvidia, potentially prompting short‑term trading adjustments.
Market read
Large bearish bets by a high‑profile investor may trigger short‑term price moves and affect sector sentiment.
What to watch
Liquidity of the deep‑out‑of‑the‑money puts and the potential for Burry to unwind without market impact.
Background
Michael Burry, famed for his 2008 subprime short, now runs a personal portfolio and has publicly disclosed large put positions against two high‑profile AI stocks.
Ticker impact
Burry disclosed holding 50,000 put options on Palantir with a $912 million notional value in his final 13F filing.
Possible short‑term price decline or increased volatility for Palantir.
The disclosed puts represent a sizable bet; traders may react by shorting or reducing exposure.
Burry disclosed 10,000 put options on Nvidia with a $186.6 million notional value and recently sold the near‑term puts.
Potential short‑term pullback or heightened sell pressure.
The publicized put position is large relative to typical institutional holdings and could influence market sentiment.
Market effects
Signals possible broader skepticism toward AI‑related mega‑caps.
May affect US tech‑heavy indices such as the Nasdaq.
Could influence global tech sentiment given Nvidia's worldwide exposure.
Counterpoint
Burry's timing may be premature; the AI rally could continue despite his bearish bets.
Key entities
- individualMichael Burry
Founder of Scion Asset Management, now personal investor.
- companyPalantir Technologies
Data analytics firm with high valuation multiples.
- companyNvidia Corporation
Leading GPU and AI hardware provider.
