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Michael Burry a.k.a. "Big Short",discloses $1.1B bet against Nvidia&Palantir

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Re: Michael Burry a.k.a. "Big Short",discloses $1.1B bet against Nvidia&Palantir

#351
post #323

Article is misleading/wrong on the sizing: > Scion bought roughly $187.6 million in puts on Nvidia and $912 million in puts on Palantir, according to Securities and Exchange Commission filings. But 13F reports the market value of the underlying shares for options, not the premium paid for the options All we know is at time of filing he has 10k NVDA puts and 50k PLTR puts. We don't know the strike price or the duratio…

I can find extreme Nvidia puts on robinhood for 2 cents right now. So risking ~$2 of actual money gets you ~$20,000 notional 13F value. So the claim "$187.6 million in puts on Nvidia" potentially means "Burry risked a total of $18,760 betting against Nvidia" in reality.

What do you mean by "potentially means"? I am quiet new to this and the financial jargons don't make sense. I just have a very basic understanding of a few terms.

What do you mean essentially? That if everything goes south and nothing happens like Burry predicted then the maximum amount he loses is just $18,760 ?

And if that's all that he loses then what's with the big fuss around the news as if it's almost apocalypse incoming with his bets?

Re: Michael Burry a.k.a. "Big Short",discloses $1.1B bet against Nvidia&Palantir

#352

He’s clearly right, but shares could take a really long time before they actually come back to reality.

He's not clearly right on Nvidia. People have been saying "it's clearly overvalued" for years now. And it just keeps growing at an insane pace and quite frankly their position in the market isn't really being eroded by anyone. There are hopes and dreams, but little real competition.

> And it just keeps growing at an insane pace

Nobody is accusing the market of behaving rationally

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