Michael Burry Shifts Bearish Bets to Nasdaq-100 and Semiconductor ETF Put Options

Investor Michael Burry has shifted most of his bearish positions into put options on the Nasdaq-100 Index (NDX) and the VanEck Semiconductor ETF (SMH). Burry closed several existing short positions to consolidate his exposure into these options, while retaining long-dated put options on Oracle (ORCL) and Palantir Technologies (PLTR). He also sold out of common stock in Fannie Mae (FNMA) and Freddie Mac (FMCC) to capture tax losses after purchasing preferred shares.

Burry stated that he expects a significant stock market top to occur within the next nine months. Put options give an investor the right to sell an asset at a specified price before a set date, profiting if prices fall. The semiconductor ETF contains heavy weightings in major chipmakers, including Nvidia (NVDA), Taiwan Semiconductor Manufacturing Co. (TSM), and Advanced Micro Devices (AMD). Burry noted that low volatility made the Nasdaq-100 options relatively inexpensive.

Investors will monitor whether major technology stocks continue their rally or face downward pressure as predicted. Key areas to watch include price trends in leading semiconductor companies and the performance of tech indexes moving toward the 2027 option expiration dates.