Michael Burry has already shown his hand. Now it's time to profit from it.
One of this weekend's subscriber-only reports breaks down Michael Burry's latest portfolio—and, more importantly, what it means for option traders.
Earlier this year, Burry quietly built a significant position in Microsoft. As usual, he was early. Very early.
But he was right.
The chart below shows exactly where Burry accumulated shares before Microsoft exploded higher.
That trade is history.
The next opportunity may be even bigger.
In this week's Masterclass, I dissect Burry's increasingly aggressive bearish stance toward semiconductor stocks and the AI infrastructure trade. Contrary to the headlines, Burry isn't betting against artificial intelligence. He's betting against excessive valuations—and history suggests that's a very different trade.
That's where we come in.
Finding major directional themes is only half the battle.
The real money is made by structuring option positions that can benefit from those themes, a concept that is often easier said than done.
If the semiconductor sector begins the decline Burry is anticipating, I believe it could produce some of the best option opportunities we've seen in years - though with any options trade, outcomes are never guaranteed and losses can and do occur, exceeding initial expectations.
These are exactly the kinds of environments where our approach has historically been positioned to perform - though past results don't predict future ones and no environment guarantees a winning trade.
Inside this weekend's report you'll discover:
- Why Burry is targeting semiconductor valuations.
- Which AI infrastructure stocks appear most vulnerable.
- How we're positioning alongside Burry's very public thesis.
- The specific option strategies we're preparing to deploy if this thesis begins to play out.
If you've been waiting for a high-conviction macro theme this may be one worth watching closely - though options carry substantial risk and even high conviction themes can move against you or fail to play out on the expected timeline.
The next major move rarely announces itself in advance.
This one just might have.
Three Charts. One Message.
I'm not asking you to take Michael Burry's word for it.
Look at what the charts are saying.
SOXX – Semiconductor ETF
The sector has broken its momentum and is now testing the primary trendline that has supported the entire AI bull market. If that level fails, downside risk increases dramatically.
Micron (MU)
One of Burry's disclosed bearish positions. After an extraordinary run, the stock is beginning to violate the trend structure that carried it higher. Weakness here could be an early warning for the group.
NVIDIA (NVDA)
The market's AI leader is no longer making higher highs. Instead, price is compressing beneath a declining trendline while long-term support is being tested. Leadership stocks often provide the earliest clues about where institutional money is headed next.
There are no guarantees that these patterns resolve lower.
But when technical deterioration begins to align with one of the greatest contrarian investors of our generation building bearish positions, I pay attention.
More importantly, I prepare.
Former subscribers: You already know how I trade, you know I don't chase headlines. I wait for asymmetric opportunities—and I believe one is developing right now.
When the market presents a high-conviction theme, I don't simply discuss it—I build an option campaign around it, sized and structured with an understanding that options can expire worthless and losses can happen fast.
RISK DISCLOSURE
Options trading involves substantial risk of loss and is not suitable for all investors. Past performance, including any results discussed here, is not indicative of future results. This is not personalized investment advice.
If you're ready to get back in before the crowd, now is an excellent time to rejoin.