The Big Short’s Michael Burry has snagged 40,000 put options linked to $SPY (SPDR S&P 500 ETF Trust) and $QQQ (Invesco QQQ Trust) funds, crafting a whopping $1.6 billion short position against them ($26.5 million to anchor this position, with $1.6 billion reflecting the notional value). 😱
When the curtains were lifted on Burry’s new ‘Big Short’ in August, it was disclosed that these positions constituted over 90% of his portfolio. Yet, whether he’s clutching onto those positions is still shrouded in mystery.
If he is, they’re far from hitting the jackpot, with Burry trailing by about 50% on his S&P 500 and Nasdaq shorts, as per calculations by trader Gurgavin. 🎰
MICHAEL BURRY IS NOW ONLY DOWN 50% ON HIS “$1.6 BILLION” S&P 500 AND NASDAQ SHORT IF HE IS STILL HOLDING IT
BASED ON THE SAME ESTIMATES https://t.co/Op16uzpkvD
— GURGAVIN (@gurgavin) September 21, 2023
Despite the downward trend of the two indexes, they’ve soared by more than 13% and 35% since the year’s onset, respectively.
Burry, famed for foreseeing the US housing market crash, has since made several audacious predictions, most of which haven’t seen the light of day. 🎲