Renowned investor Michael Burry, known for predicting the 2008 housing crash, is suggesting that US stocks may reach a significant peak in the next nine months.
Burry has consolidated his bearish exposure by investing in put options on the Nasdaq-100 index (NDX) and the VanEck Semiconductor ETF (SMH), according to a report by 24/7 Wall St.
He revealed these moves on his Cassandra Unchained Substack recently.
Put options give the buyer the right, but not the obligation, to sell an underlying asset at a predetermined price (strike price) by a specific expiration date. The value of a put option increases when the market price of the underlying asset falls below the strike price.
His Nasdaq-100 puts will expire in April 2027, while his semiconductor ETF puts will last until June 2027.
Burry mentioned that he will maintain his longer-dated puts on Palantir Technologies (PLTR) and Oracle (ORCL) but close out his other bearish positions.
The semiconductor ETF has seen a significant increase of over 67% this year, driven by companies like Nvidia (NVDA), Taiwan Semiconductor Manufacturing (TSM), and AMD (AMD), which collectively represent 34.5% of its holdings.
AMD alone has surged by more than 170% in 2026, while TSM and Nvidia have gained 43% and 20%, respectively.
Burry previously closed his December 2026 Nvidia puts due to time decay affecting the position.
Considering that nine months from October extends into July 2027, beyond the reported expiration dates, a late peak could align with Burry’s forecast but might be too late for his contracts.
The report highlights that Burry has not disclosed the sizes of his positions or the premiums paid, leaving uncertainty about whether his overall bearish bet has increased.
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Generated Image: Midjourney
