Michael Burry changed the expiration date on his puts. This counts as news because he made one correct bet in 2008 and we turned him into a oracle.
The man who shorted subprime mortgages now shorts tech stocks. Revolutionary stuff. Next he'll discover that buying low and selling high generates profit.
Switching from longer-dated puts to June expiries means Burry thinks the AI bubble pops in six months instead of twelve. He moved his guess forward. Breathtaking market insight. Someone check if he also predicts rain will fall from clouds.
Every retail trader who read this headline just opened their Robinhood app to buy puts on NVIDIA. They will not check implied volatility. They will not calculate break-even prices. They will simply remember that Christian Bale played Burry in a movie and assume genius transfers through cinema.
Here's what actually happens when a famous short seller telegraphs his position to the entire market: absolutely f*cking nothing. The AI bubble bursts when it bursts. Your puts expire worthless when they expire worthless. Michael Burry's opinion on timing changes neither outcome.
The funniest part is calling him a "famed short seller" like he runs a sustainable business model. The man has been wrong about market timing more often than a broken sundial. But he got one massive trade right eighteen years ago so we treat his option expiry changes like papal decrees.
Somewhere right now a guy who works at Enterprise Rent-A-Car is liquidating his index funds to buy tech puts because Michael Burry picked June instead of September, and that guy will lose everything by July while Burry closes his position quietly through a 13F filing nobody reads.
Photo by Ethan Wilkinson on Unsplash
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