Burry Loads Up on Shorts, Buys Nvidia Calls to Offset Exposure

Michael Burry, known for his role in 'The Big Short', has taken positions that reflect his skepticism towards several tech giants. He bought December Nvidia (NVDA) calls as a 'hedge' to offset some of his existing short positions.

Burry added to shorts in Oracle (ORCL), Palantir (PLTR), Nebius (NBIS), and Caterpillar, with the total short stock position now over 21% of his portfolio. He also increased his stakes in Birkenstock (BIRK) and Freddie Mac (FMCC).

In a post on Substack, Burry explained that he purchased December Nvidia calls with strikes set in the mid-to-high $200s for single-digit prices. The premium on these calls is substantial but fully offset by his short position.

Burry's analysis suggests Nvidia's current stock price does not align with market expectations. He believes the company's monopoly power will eventually wane, leading to a decrease in earnings margins and reduced distributions to shareholders.