Michael Burry Shifts AI Short Bets to Index Puts

Investor Michael Burry shifted his bearish strategy against the artificial intelligence trade by consolidating individual short positions into broad index puts. On October 11, Burry announced that he rolled most of his options into puts on the Nasdaq-100 and the VanEck Semiconductor ETF, which he views as a concentrated bet against overextended stocks such as Nvidia, Taiwan Semiconductor, and Advanced Micro Devices.

Burry predicts a significant market top within the next nine months, though he warns the final stage of the bull run could be wild, characterized by rapid price increases before a pullback. His index puts are set to expire in June 2027.

Despite the move toward indices, Burry maintains direct put positions on Oracle, Palantir, Met Life, and Caterpillar. He noted that falling volume during a recent rally for Palantir suggests building exhaustion among shareholders.