Michael Burry Buys Nvidia Calls as Hedge, Lifts Shorts Above 21% of Portfolio
Updated
Updated · Yahoo Finance · Aug 26
Michael Burry Buys Nvidia Calls as Hedge, Lifts Shorts Above 21% of Portfolio
3 articles · Updated · Yahoo Finance · Aug 26
Summary
December Nvidia calls with strikes in the mid-to-high $200s were added by Michael Burry ahead of earnings, even as he increased shorts in Nvidia, Oracle, Palantir, Nebius and Caterpillar.
More than 21% of Burry’s portfolio is now in short stock positions excluding puts, while his Nvidia short-and-put exposure alone accounts for about 3.5%-4%, making the calls a hedge rather than a bullish bet.
Burry argues Nvidia is worth less than its market value because its monopoly power should fade, margins could fall and heavier capital spending may leave too little cash distributed to shareholders.
The investor said Nvidia has recently fallen more than it has risen after earnings and called the near-term reaction a coin flip, even as he warned future investment through the bubble could trigger sharp earnings cuts.