Michael Burry Takes Bearish Stance with Put Options on Nvidia and Palantir

Michael Burry's Scion Asset Management is shaking up the market with fresh bearish bets this quarter, snapping up put options on Nvidia Corp. (NASDAQ: NVDA) and Palantir Technologies Inc. (NYSE: PLTR). It's a move that has eyebrows raised, especially given Burry's reputation for calling the housing bust years ago.

The filings, made public on Monday, show these puts could pay out if the shares of these two tech heavyweights take a dive. This is less of a casual nudge and more a clear bet on falling prices, which is grabbing attention since both companies have ridden solid momentum lately.

Interestingly, Burry's fund isn't just betting against the tech giants. The same filings reveal call option pockets built up on Halliburton Co. (NYSE: HAL) and Pfizer Inc. (NYSE: PFE), hinting at a more nuanced position across sectors.

Just days ago, Burry stirred up chatter on the social media platform X (formerly Twitter), sharing a cryptic image of his character from "The Big Short" alongside a message: "sometimes, we see bubbles." The timing couldn't be more telling as he doubles down on his latest trade moves.

On Monday evening, he followed up with additional posts linking to Bloomberg coverage highlighting concerns about circular financing tactics involving Nvidia and similar companies. This suggests he's keeping a close eye on the financial structures behind these headlines.

Burry's put options on Nvidia are not entirely new territory. He first disclosed a position on Nvidia puts in early 2025. However, that initial filing noted the puts might be hedges against existing long holdings not yet reported. The latest disclosure omits that caveat, implying a more straightforward bearish play this time around.

While these moves definitely add spice to Nvidia and Palantir's narratives, the market's response has been varied. Nvidia shares bounced back today with a 2.17% rise, while Palantir gained 3.35%, indicating that others aren't all convinced of an impending tumble just yet.

Burry's blend of bearish and bullish options across different names paints a picture of a strategist probing for weaknesses in some corners while betting on strength in others. Whether these bets will pan out or flip the script remains to be seen.

As volatility lingers, it seems every move Burry makes is being parsed for clues on what might ripple through tech and beyond next.