Michael Burry, of Big Short fame, just bet $1.6B on a stock market crash

Post by YeBanKo » Wed, Aug 16, 2023, 8:55 PM UTC

mpixel wrote: post #4

qeternity wrote: post #3

Earlier quoted context omitted.

It isn’t. CNN and many others have awful financial literacy and reporting standards. The 13F notional value calculations are horrendous. There is simply no way of knowing how big of a bet it is, but I can all but guarantee that it isn’t remotely close to 80% of his portfolio.

heck, it might even be larger-than-usual hedge where he thinks a crash is possible and the reward is relatively high to the small loss he'd be making, there's a lot of nuance skipped over here.

Post by YeBanKo » Wed, Aug 16, 2023, 9:02 PM UTC

seanhunter wrote: post #12

tjrgergw wrote: post #10

Earlier quoted context omitted.

> it can remain illogical longer than you remain solvent I don't know the details in real life, but in the movie he was mildly early and losing money for a long time before the move started realizing. I and heard rumors that there were other players that were even earlier and had to close their positions before it realized in order to avoid going bankrupt. BRB buying the book.

The book is not accurate and in particular most of the traders fought the decision to put the short on and then took credit for it afterwards. I really don’t want to say anything further. Source: I was there (working as a strat for Goldman in mortgages during the crisis).

Post by qeternity » Fri, Aug 18, 2023, 10:51 AM UTC

YeBanKo wrote: post #21

mpixel wrote: post #4

Earlier quoted context omitted.

heck, it might even be larger-than-usual hedge where he thinks a crash is possible and the reward is relatively high to the small loss he'd be making, there's a lot of nuance skipped over here.

He might be sitting on a bunch of QQQ and SPY and just hedge against the price drop. I don’t know if reporting requirements are the same for long puts vs protective. Can anyone familiar with the topic elaborate?