Michael Burry Shorts Stock Market With $1.6 Billion Worth Put Options

• Michael Burry shorted the stock market with $1.6 billion, acquiring $739 million QQQ and $886 million S&P 500 put options.
• Burry takes a bearish stance on S&P 500, NASDAQ 100, attracting crypto interest.
• Moreover, Burry’s portfolio shift: reduced banks, added $EXPE, $CHTR, $GNRC.

The “Big Short” star Michael Burry has reportedly shorted the market with $1.6 billion. On August 14, it was reported that Scion Asset Management, under Burry’s direction, acquired put options worth approximately $739 million for the Invesco QQQ Trust ETF and separate put options valued at around $886 million for the SPDR S&P 500 ETF. These put options enable the selling of shares at a predetermined price in the future and are commonly utilized to convey a negative outlook.

Burry has now assumed a significant short stance against the S&P 500 (monitored via SPY) and the NASDAQ-100 Index (monitored via QQQ), as indicated by the Michael Burry Stock Tracker on social media. These stances make up approximately 93% of his complete portfolio and have drawn interest from cryptocurrency supporters who view Bitcoin as a potential safeguard in the event of a market downturn.

A tweet also noted that Michael Burry’s portfolio is primarily composed of five prominent positions including $EXPE, $CHTR, $GNRC, $CVS, and $CI which was acquired in Q1. According to the Michael Burry Stock Tracker, apart from these significant acquisitions, the remainder of Michael Burry’s stock selections underwent a substantial shift in focus. He divested from his two major Chinese stocks, witnessing a decrease of 2.14% in BABA’s value and a slight increase of 0.52% in JD’s value.

Additionally, he reduced his exposure to most of his bank holdings and notably initiated put options against the entire finance sector. This strategic repositioning underscores Burry’s evolving outlook on various segments of the market.

Back in 2022, Burry predicted a U.S. economic recession in the latter part of 2023. He highlights that the Federal Reserve’s reaction to the approaching recession and government measures to invigorate the economy will define the subsequent inflation surge.