Michael Burry's Bearish Strategy and Current Status

Michael Burry, the investor from "The Big Short," used the phrase "Big Pain" in his latest social media post. This reflects the expectation of a downturn for NVIDIA Corp. (NASDAQ: NVDA) and Palantir Technologies, Inc. (NASDAQ: PLTR).

After revealing changes in his portfolio for the third quarter, Burry used unusually bold expressions. His social media post gives the impression that he still holds a significant amount of put options.

In Burry's post, there is a still from the film "The Big Short" featuring Christian Bale. In the image, Burry looks worn out and stressed amidst papers and files spread across the floor. This reflects the investor's inner turmoil and exhaustion. In his post, Burry referenced his past short position in the housing market by stating, "Then I was, now I am. Whatever. After all, it worked for me. It will work again." This enabled him to profit during the decline in the late 2000s.

Currently, it can be said that Burry is concerned about his significant short positions. Burry's firm, Scion Asset Management, made a purchase of 5 million in puts on Palantir and 1 million in puts on NVIDIA during the third quarter. His previous posts were filled with ambiguous language; Burry had not disclosed whether he had closed his short positions.

His latest post suggests that he still holds these options and has not yet closed his positions on Palantir and NVIDIA. These positions are believed to be in considerable losses.