Burry Takes Defensively on Nvidia Ahead of Earnings

Michael Burry, a well-known investor who bet against the housing market before the 2008 financial crisis, has taken out a defensive options position on Nvidia (NVDA) ahead of its quarterly earnings. The move is part of his larger bearish wager on the stock.

Burry purchased December Nvidia call options with strike prices in the mid-to-high $200s and paid single digits for the contracts. He described this position as a 'hedge' against his larger short position, noting that the premium is entirely offset by his short exposure to Nvidia.

The calls represent roughly 3.5% to 4% of Burry's portfolio, according to his Substack newsletter. He emphasized that he would not have made this trade without his substantial short and put exposure to Nvidia, stating 'I am not playing for gains here.'