Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
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Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#2Also related, since we are talking about Michael Burry (alias Cassandra on twitter), besides the subprime mortgage shorting in 08, another interesting bet he made was with GME (gamestop) against the shortsellers.
To clarify, Burry was long on GME, I think his bet was done in January, and ended it late december, so very likely more than 5x returns.
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#3I'm having a hard time with this one since from the article it doesn't seem like Burry is seeing anything that isn't very well discussed/analyzed already regarding Tesla. Short sellers have gotten very burned in the past in gambles like this, but they've also sometimes made money. Given how historically irrational the market has been about Tesla, this just seems like a gamble rather than the well-reasoned short position based on deep (and unpopular) analysis that his subprime mortgage play was.
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#4Michael Burry shorted the mortgage backed securities market before most other short sellers. He even suffered from redemptions of his fund and had to disallow them to stop the hemorrhage. Let’s see if his timing is closer to the downwards inflection point now. The market seems super frothy now and I am wary of calling the moment of the inevitable downward spiral. Seen this movie many times before. Just always called it too early (which means you lose). I think being a momentum trader is very hard and requires nerves of steel.
https://www.investopedia.com/trading/introduction-to-momentu...
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#5Also related, since we are talking about Michael Burry (alias Cassandra on twitter), besides the subprime mortgage shorting in 08, another interesting bet he made was with GME (gamestop) against the shortsellers. To clarify, Burry was long on GME, I think his bet was done in January, and ended it late december, so very likely more than 5x returns.
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Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#6I'm having a hard time with this one since from the article it doesn't seem like Burry is seeing anything that isn't very well discussed/analyzed already regarding Tesla. Short sellers have gotten very burned in the past in gambles like this, but they've also sometimes made money. Given how historically irrational the market has been about Tesla, this just seems like a gamble rather than the well-reasoned short posit…
It's likely he's already up massively on his PUTs, which were purchased sometime in Q1. We don't really know the strikes or expiry dates, so it's hard to say.
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#7Personally I loved every bit of the GME show and I'd love to see short sellers get squeezed on TSLA as well.
Shove it to them. We don't need pessimists in this world.
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#8>Michael Burry is long puts
....so short?
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#9As options can grant the buyer significant leverage with each option representing 100 shares, the sum they came up with for the article title is likely a misrepresentation, and if the bet goes wrong notably less money will probably be lost. Either way I don't think articles of this nature are particularly useful however.
Re: Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla
#10The only new reveal is the dollar figure. Burry has been very openly (and vocally) short on Tesla for a while now. He has been Tweeting a bunch about it since September last year. Tesla shares are up ~75% since those original Tweets.
"The market can remain irrational longer than you can remain solvent" applies to both amateur traders and the most seasoned investor/genius alike.