Michael Burry, the money manager made famous in the book and film 'The Big Short,' appears to be betting on a major downturn in the US stock market.
Burry held bearish positions against the S&P 500 and Nasdaq 100 Index worth a combined $1.6 billion at the end of the second quarter, according to securities fillings released on Monday.
The founder of Scion Asset Management bought put options against $739 million worth of shares in the popular Invesco QQQ Trust ETF during the quarter, and separate put options against $886 million worth of the SPDR S&P 500 ETF.
Put options convey the right to sell shares at a fixed price in the future. They typically increase in value if the price of the underlying stock declines, making them a defensive bet.
Source:
Mail Online