Burry Locks in Quick Profit on Nvidia Calls, Remains Bearish on Chipmaker
Michael Burry, known for his prescient bet against the housing market in 'The Big Short,' made a quick profit on Nvidia (NVDA) call options after selling half of his position less than 24 hours after opening it. The investor locked in a 50-60% gain following the chipmaker's stronger-than-expected quarterly results.
Burry purchased December call options with strike prices in the mid-to-high $200s shortly before Nvidia's earnings release on Wednesday, paying single-digit premiums. He characterized the position as protection for his substantially larger bearish exposure to Nvidia and the AI capital-spending boom, noting that the cost of the calls was 'entirely offset' by his shorts and puts.
Nvidia reported $96.2 billion in quarterly revenue, more than double the year-earlier total, exceeding expectations. The stock jumped roughly 9% in the following session. Burry sold half of his call position within 24 hours of establishing it, saying 'they did their job' as a hedge against his larger bearish position.
Burry remains long-term bearish on Nvidia and the AI capital-spending boom, with short exposure across Nvidia, Oracle (ORCL), Palantir (PLTR), Nebius (NBIS), and Caterpillar (CAT) exceeding 21% of his portfolio. He also holds long-dated Microsoft calls that appreciated sharply after the company's July earnings.