🎁Michael Burry Closes His Fund After Bold NVDA Put Bet – Have you ever shorted a stock?

Hi, Tigers!

Michael Burry — yes, the guy Christian Bale played in The Big Short — is once again back in the headlines. His firm Scion Asset Management has reportedly de-registered as an SEC-registered hedge fund, signalling a major shift in his operation. At the same time, filings show large put-option bets against $NVIDIA(NVDA)$ and other AI-linked stocks.

Before we chase the headline, three quick reality checks:

13F filings (or similar) only show holdings at quarter-end; they don’t reveal when the positions were initiated or closed. Thus, the profit or loss of the short bets is ambiguous. For example: if he built the NVDA short early in Q1 when NVDA dropped ~19.3% then closed before the rebound, profit plausible; if he held into Q2 when NVDA rose ~45.8%, a loss likely.

Put options aren’t the same as directly shorting stock: the maximum loss = the premium paid, which is different risk profile.

As of now, we don’t know exactly when Burry closed or how much he paid for premium, so the outcome remains speculative.

So what exactly happened? And—here’s the kicker—have you ever tried shorting a stock? Let’s dive in.

📝 According to the public infomation

• In Q1 2025, Burry’s Scion disclosed put-option positions on NVDA — around 900,000 shares worth about US$97 million. (Note: exact figures vary by report.)

• In Q2, those short positions reportedly were cleared; the Q2 filing shows no large-held NVDA puts.

• In Q3 2025, Scion opened a new put-option position: approximately 1 million NVDA puts, notional value ~US$186 million.

• Meanwhile, Scion also took a much larger put-position against $Palantir Technologies Inc.(PLTR)$ of ~US$912 million notional in Q3.

In short, Michael Burry’s recent move is both bold and opaque. Whether his NVDA short pays off or not, the message for individual investors is clear: shorting is tough. Especially when you face strong fundamentals, a buoyant market and momentum behind a stock, the odds can be steep. And if you are considering a short, make sure you treat it like a trade needing discipline, not just a “bet the house” gamble.

👉 Questions for Tigers:

• Have you ever attempted to short a stock? — direct short selling, put options, inverse ETFs?

• How do you approach risk and position sizing when you short? Do you use stop-losses, hedge?

• Do you look at timing, technical signals, or macro cues when you think about a short?

✨Share your experience in the comments section — let’s build a discussion.

🎁Prizes Comment Rewards: All valid comments on the following post will receive Tiger Coins, but don’t copy others’ homework hahaha. We strongly recommend selecting the "Also repost" button when posting a comment to receive more rewards.

💡New to the short side? Here’s a two-minute crash course—no finance degree required.

1. Shorting methods

   1. Buying put options (“long put”): You pay premium, gain if stock falls, max loss is premium.

   2. Direct short stock: You borrow shares, sell, hope to buy back lower; risk is theoretically unlimited.

   3. Inverse ETFs / derivatives: Indirect way, often less flexible but lower individual stock risk.

2. Risk management

Strict Implementation is a Must for All Transactions：

If you’re shorting, precision matters. For example, enter around $178.05, set a stop near $177.20 — that’s roughly 1% risk. Map out your exit too: first target at $171.60, second around $168.75.

In a strong bull market, shorts can get steamrolled fast, so most traders keep it short-term — 2 to 5 trading days at most — unless you’re betting on a real structural break. And no matter how confident you feel, don’t let a single trade risk more than 2% of your total capital.

3. Timing Is Everything

Good shorts aren’t just about conviction — they’re about timing. Look to enter near key resistance levels, or when you see heavy call-option activity and fading volume. On the macro side, watch for overstretched valuations and euphoric sentiment — classic warning signs of a possible pullback. And if you want to play it smart? Hedge your bets — go long a peer or a sector ETF to balance out your risk.

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