Michael Burry Rolls His GameStop Profits Into Google Calls and Tesla Puts

6/1/2021 Michael Burry Rolls His GameStop Profits Into Google Calls And Tesla Puts | Seeking Alpha
le Calls And Tesla Puts | Seeking Alpha 6/1/2021 Michael Burry Rolls His GameStop Profits Into Google Calls And Tesla Puts | Seeking Alpha
Michael Burry Rolls His

GameStop Profits Into Google
Calls And Tesla Puts
May 30, 2021 8:48 AM ET | ARPO, CVS, CXW... | 59 Comments | 39 Likes
Safety In Value
Marketplace Bio
Summary Photo by Astrid Stawiarz/Getty Images Entertainment via Getty Images

Michael Burry predicted the mortgage collapse and made huge profits For most investors, Michael Burry needs no introduction. His exploits
as profiled in the movie "The Big Short." during the mortgage crisis of 2008-2009 (where he bought CDS) were
Last year he was very early to GameStop, earning significant profits. famous enough that they made a movie about them. The picture above is
Michael Burry at the premiere of "The Big Short." He has proven
He added a number of bearish bets on interest rates (and Tesla!). adaptable, and he made a great call buying a significant position in
Dipped his toes into shipping. GameStop (NYSE:GME) early last year when it was still broadly perceived
as a dying retailer. I've been covering his positions every quarter since his
Added call options on Google and Facebook, hedged by puts on a new fund became large enough to require mandatory disclosure to the
growth index. SEC (and, in fact, I believe I was the first writer to publicly do so). My
Looking for more investing ideas like this one? Get them exclusively at discussion around his positions from the previous quarter can be found
Microcap Review. Learn More » here for comparison to this quarter's positions.
The positions in the table below are as of the end of Q1 (March 31, 2021).
Company Symbol Value Shares Security
($000s)
AERPIO PHARMACEUTICALS ARPO $ 1,290 1,000,000 Common
INC
https://seekingalpha.com/article/4432111-michael-burry-rolls-his-gamestop-profits-into-google-calls-and-tesla-puts?mail_subject=michael-burry-rolls-his-gamestop-… 1/22 https://seekingalpha.com/article/4432111-michael-burry-rolls-his-gamestop-profits-into-google-calls-and-tesla-puts?mail_subject=michael-burry-rolls-his-gamestop-… 2/22

6/1/2021 Michael Burry Rolls His GameStop Profits Into Google Calls And Tesla Puts | Seeking Alpha 6/1/2021 Michael Burry Rolls His GameStop Profits Into Google Calls And Tesla Puts | Seeking Alpha
NOW INC DNOW $ 7,063 700,000 Common

ALPHABET INC GOOG $ 165,490 80,000 Call
OCCIDENTAL PETE CORP OXY $ 5,990 225,000 Common
CORECIVIC INC CXW $ 9,955 1,100,000 Common
PRECISION DRILLING CORP PDS $ 4,813 222,706 Common
CVS HEALTH CORP CVS $ 30,092 400,000 Call
PROSHARES TR TBT $ 6,522 300,000 Common
CVS HEALTH CORP CVS $ 8,275 110,000 Common
PROSHARES TR TBT $ 55,133 2,536,000 Call
DIREXION SHS ETF TR TMV $ 3,128 38,400 Call
PROSHARES TR TBF $ 4,577 100,000 Call
FACEBOOK INC FB $ 161,992 550,000 Call
RPT REALTY RPT $ 6,846 600,000 Common
GENCO SHIPPING & TRADING GNK $ 3,575 354,711 Common
LTD SCORPIO TANKERS INC STNG $ 3,509 190,100 Common
GOLDEN OCEAN GROUP LTD GOGL $ 3,554 530,000 Common SUNCOKE ENERGY INC SXC $ 7,711 1,100,000 Common
HELMERICH & PAYNE INC HP $ 5,392 200,000 Common TESLA INC TSLA $ 534,411 800,100 Put
INGLES MKTS INC IMKTA $ 9,248 150,000 Common URSTADT BIDDLE PPTYS INC UBA $ 874 52,512 Common
ISHARES TR TLT $ 171,534 1,266,400 Put VECTOR ACQUISITION CORP VACQ $ 5,465 461,591 Common
ISHARES TR IWF $ 42,374 140,900 Put ZYMEWORKS INC ZYME $ 8,875 281,018 Common
KRAFT HEINZ CO KHC $ 46,992 1,174,800 Call
Source: Scion Form 13-F (direct link to table)
LUMEN TECHNOLOGIES INC LUMN $ 8,678 650,000 Common
MARINUS PHARMACEUTICALS MRNS $ 4,602 297,272 Common
Interest rates
INC
MEREDITH CORP MDP $ 4,169 140,000 Common Dr. Burry added a number of interest rate hedges this quarter, all of
NETAPP INC NTAP $ 21,801 300,000 Call
which would profit from a rise long term interest rates. This bet is quite
leveraged, with call options on long-term treasury bear ETFs, and put

options on long-term treasury bull leveraged ETFs. That is obviously a these are large call option positions. I suspect that in many ways he views
macro bet and not a specific security selection bet. While Michael Burry this as a pair with his TSLA trade. If the market remains exuberant, the
has mostly been an individual stock picker for the vast majority of his large tech businesses will probably continue their strong momentum. If
career, I'd argue the mortgage trade that made him famous was in fact the market were to fall, TSLA is probably more exposed on the downside
mostly a macro trade. Obviously, I have no way of knowing for sure what given it has a lower quality business by essentially any metric than
will happen with interest rates, but I did publish a piece on other ways to Alphabet (Google would arguably be the best business on earth) and
benefit from rates rising that I think is relevant. Facebook.
Tesla Scion also took a position in puts on the iShares Russell 1000 Growth ETF
(IWF). I think it's reasonable to assume this is also a hedge on the big
There was quite a stir when he announced (prior to the publication of his tech positions. The big tech stocks tend to trade in the same direction as
SEC filing) that he had bought Tesla (NASDAQ:TSLA) put options. The the growth market, but will almost certainly outperform IWF in a market
size of the position is significant, with a notional value of $534 MM at the drawdown.
end of the quarter. However, the position is held with put options, and
there is no obligation to disclose the strike price of those options. If (as Shipping
seems probable) he bought them out-of-the-money, the actual capital at
risk would be only a fraction of the $534 MM notional value. That said,
Tesla options have consistently traded with a high implied volatility, which
makes them relatively expensive. In my opinion, that is probably why he
went public with this position, which he has done rarely - he presumably
believes the firm is worth less than its price when put on the position. But
because options are time bound the length of time it takes for TSLA
shares to reach his target price matters as well.
Alphabet and Facebook
Interestingly, Dr. Burry also took large positions in Alphabet There was also an interesting addition sector-wise, with a number of new
(NASDAQ:GOOG) (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) in the positions in shipping. Michael Burry has often added thematic sets of
options market this quarter. Both are firms he has owned in the past, but positions in the past, such as beaten down retailers early in 2020 and

prior to that, and suburban grocery real estate type firms later in 2020. my own opinions. I am not receiving compensation for it (other than from Seeking
Alpha). I have no business relationship with any company whose stock is
This seems like a similar thematic play, with a total of three additions. mentioned in this article.
Genco Shipping & Trading (NYSE:GNK) and Golden Ocean
(NASDAQ:GOGL) both have dry bulk exposure, while Scorpio Tankers Advertisement
(NYSE:STNG) is a tanker firm. That puts him more on the commodity end
of the shipping business, with exposure to global trade in things like iron
ore and crude oil. So far no exposure to the recently hot container
shipping sector has been reported. This seems like a play for a cyclical 39 Likes 59 Comments
swing to me - tankers were very popular among value investors about a
year ago, but many were burned at that time. That has taken a portion of
the investor base out of the shipping market, potentially making it a good
time for a noted contrarian like Dr. Burry to "dip his toe in the water." Get Access to exclusive premium content, real-time chat and much more
by Safety In Value with:
Conclusion
Dr. Burry has a track record that makes studying his positions
worthwhile. While some investors like to "clone" guru portfolios, I think
independent thinking provides its own value, and I find if I make my own Microcap Review
selections, I'm more likely to know when it makes sense to double down ★★★★★
and when to sell. But I do think there is a great deal of value in looking at
the portfolios of exceptional investors. Especially to see what themes Free Trial
they are investing in. I find trying to understand his thought process has
made me a better investor, which is why I evaluate his positions every
quarter.
This article was written by Comments (59) Newest
Safety In Value
4.9K Followers reverselo Yesterday, 10:32 PM
Author of Microcap Review Comments (1.57K)
Analysis of underfollowed microcaps worldwide, plus arbitrage and net-nets
What happened on his Zillow short?
Disclosure: I am/we are long GOOG. I wrote this article myself, and it expresses
my own opinions I am not receiving compensation for it (other than from Seeking Reply Like (1)

Bonusplus Yesterday, 6:09 PM Alter-X Yesterday, 4:52 PM

Comments (1.13K) Comments (146)
Burry does well makes his own trend, doesn't care about the Fed, bankers Interesting but I wonder if he has already closed the TSLA puts. He
or what any blogs say that is a given. doesn't have to tell us until after Q2.
Reply Like (1) Reply Like (2)
iv2006 Yesterday, 5:29 PM DontTaxMeBro Yesterday, 5:34 PM

Comments (1.04K) Premium
Comments (254)
It is a good time to add TLT puts. Rates have been consolidating for some
time and now could be ready to move. Volatility is not too high either. @Alter-X Good point, lost on many of those commenting here
Reply Like Reply Like (2)
ShankaSwingTrades Yesterday, 5:03 PM Amos Tuck Yesterday, 6:18 PM
Comments (551) Comments (3.27K)
Burry why the smug look? @Alter-X
Reply Like Why in the world would he close his Tesla puts when the stock's
worth $75 but trades at $625? *
Rey Arbitrageur Yesterday, 9:42 PM
Comments (2.11K) The syllogism is simple:
@ShankaSwingTrades He knows what you don't. 1. Car companies trade at book value.
Reply Like (3) 2. Tesla is a car company.
3. Tesla's book value is $23.

ShankaSwingTrades Yesterday, 10:04 PM * I'm being generous and giving Tesla 3X the multiple of its peer
Comments (551) group. (edited)
@Rey Arbitrageur Exactly,
Reply Like (5)
I choose to live in state of happiness!
TomasViewPoint Yesterday, 4:24 PM
Reply Like Comments (6.76K)
https://seekingalpha.com/article/4432111-michael-burry-rolls-his-gamestop-profits-into-google-calls-and-tesla-puts?mail_subject=michael-burry-rolls-his-gamestop-… 9/22 https://seekingalpha.com/article/4432111-michael-burry-rolls-his-gamestop-profits-into-google-calls-and-tesla-puts?mail_subject=michael-burry-rolls-his-gamesto… 10/22

( )
language police Yesterday, 4:16 PM
Help me out. Comments (1.75K)
The table is end of Q1 positions. Then the author writes Burry took "large Can't know whether or not he'd profit from L-T interest rate rise being
positions" in GOOG and FB "this quarter" but gave no numbers. long TLT puts without knowing which puts we're talking about.
What is a "large position" and doesn't he already have large positions at Reply Like
the end of Q1?
If this is just a teaser advertisement to sell subs then they should pay SA Safety In Value Yesterday, 4:39 PM
Marketplace Contributor Premium
for the advertisement because this is certainly not analysis. Comments (1.23K)
Reply Like
Author's Reply @language police TLT puts will always benefit
Safety In Value Yesterday, 4:41 PM
from a rise in the long term interest rates.
Marketplace Contributor Premium The expiry of the put just controls how soon that rise has to
Comments (1.23K) happen for him to profit.
Author's Reply @TomasViewPoint sorry you didn't like the piece. Reply Like
By "this quarter" I meant Q1, as that is the latest positions he has language police Yesterday, 4:57 PM
had to report to the SEC. So the large positions in GOOG and FB I Comments (1.75K)
was referring to were the positions he took during Q1 (with shown
$ values shown in the table). He didn't have those positions at the @Safety In Value Well, point taken, but not really. There is time
beginning of the year, they were new during the most recently decay as well as possible change in IV. So I stand by my point that
reported quarter. author is not necessarily correct in his statement.
Reply Like Reply Like
TomasViewPoint Yesterday, 5:59 PM Wetzel Investments Yesterday, 2:55 PM
Comments (6.76K) Premium
@Safety In Value Thank you and that's more clear........perhaps just Comments (29)
say Q1 instead of "this quarter" as it will be clear which quarter
you are talking about. Enjoyed the article and you talking through the positions. These are the
Reply Like
types of articles I want to see on SA, not the constant barrage of hit
pieces. Good work!
https://seekingalpha.com/article/4432111-michael-burry-rolls-his-gamestop-profits-into-google-calls-and-tesla-puts?mail_subject=michael-burry-rolls-his-gamesto… 11/22 https://seekingalpha.com/article/4432111-michael-burry-rolls-his-gamestop-profits-into-google-calls-and-tesla-puts?mail_subject=michael-burry-rolls-his-gamesto… 12/22

Reply Like (3)

great to play along side one of the greatest investors of our era.
Reply Like
Marketplace Contributor Premium Safety In Value Yesterday, 11:43 AM
Comments (1.23K) Marketplace Contributor Premium
Comments (1.23K)
Author's Reply @Wetzel Investments Thanks! Glad you liked it
Reply
Author's Reply @dmkoch65 I'm afraid I don't know and wouldn't
Like (2) want to guess.
freeman8201 Yesterday, 2:37 PM Reply Like (1)
Comments (1.13K)
Nice play on the commodities? Dry bulk shipping and sun coke energy HATEFEEBAY Yesterday, 2:28 PM
Comments (1.04K)
and oil drilling services! Copper, steel and wood prices all going up.
WOOD etf is a good one to look at @dmkoch65 It is reported that he doubled his position on KHC
Reply Like calls too. I am long KHC and can give a TON of reasons why I am
long and deep still, but I do not have the expiration of his calls. I
am all common stock and loving KHC and she has a lot of room to
Rey Arbitrageur Yesterday, 1:55 PM move up under this CEO and his team as KHC grows in scale and
Comments (2.11K) scope.
Interesting positioning in shipping, but he may be late to the party. That Reply Like
said I prefer Matson.
Reply Like Chris Lau Yesterday, 10:25 AM
dmkoch65 Yesterday, 10:45 AM Comments (14.46K)
Marketplace
Comments (1)
Thesis: The Burry TSLA short isn't a bet against Tesla, it's a bet on
interest rates rising (AKA inflation).
I do believe Dr. Burry is on the right track for these mega trends staring He may anticipate some price erosion in Tesla EVs. Hype only works when
right at us. However, when risking hundreds of millions of dollars through you are the only EV in town. Lucid, Fisker, have tax credit rebates and will
option contracts, you need to fairly comfortable with the timing as well as
the direction of these trends and the driving force causing the pivot. Any pressure Tesla on prices.
thoughts on the expiration dates, IV and delta of his bearish positions in
TESLA, TLT, TBT or his bullish thesis for GOOG, FB, KHC. It would be He has the alpha, unlike that ARK fund, all in, with TSLA and its silly $3000
great to play along side one of the greatest investors of our era. PT analysis. LOL. (edited)

g p ,
Reply Like (5) bought some OTM puts for the first time. Although the price dropped to
ITM, it was still a losing trade. The market is apparently aware that TSLA is
a house of cards, but just unsure of the timing of the collapse.
Safety In Value Yesterday, 11:42 AM
Marketplace Contributor Premium Reply Like (8)
Comments (1.23K)
Author's Reply @Chris Lau Interesting idea. He's definitely betting Safety In Value Yesterday, 11:48 AM
on higher rates directly, so that could be another way of Comments (1.23K)
expressing the same idea.
Reply Like (1) Author's Reply @BossHoggg Definitely. Getting the timing right is
probably the hardest part of a successful options trade.
Apple Dan Yesterday, 11:11 PM Personally, I like options better for special situations type investing,
Comments (2.35K) and have used them to great effect in front of corporate events
@Chris Lau
(tenders, etc). Less multi-bagger potential than what Dr Burry is
It's an interesting idea, but aren't there better ways to play rising doing here, for sure.
interest rates than TSLA? And there is a lot of additional noise Reply Like (3)
associated with it (not least of which is Elon).
Reply Like Rey Arbitrageur Yesterday, 1:55 PM
Comments (2.11K)
Rey Arbitrageur Today, 1:09 AM @Safety In Value There's an alternative to $TSLA puts or going
Comments (2.11K) short. Buying the Granite Shares $TSLA 3x short on the LSE
@Apple Dan Doubt it's exclusively an interest rate play. More like a (3STS) has been very, very good to me.
spread bet on rates and the inevitable implosion of all things Musk. Reply Like (1)
Reply Like
BossHoggg Yesterday, 10:21 AM
Comments (1.23K)
Premium
Comments (564)
Author's Reply @Rey Arbitrageur Interesting! I hadn't heard of
Hats off to him buying TSLA puts. The options pros are known to say that security - thanks for sharing!
“puts are for schmutz.” And as you say, the theta is extreme. Meaning he
must think there will be a big drop. Before this was disclosed, I also Reply Like

have INSANE swings. And given their margins now they will haul in
See More Replies the most cash any broker has seen. Then they have tons of devs
and can pivot like Amazon did away from books. I am LONG
SuperPac Yesterday, 9:40 AM crypto. but even the doomsday scenario is bullish for CB. I am fine
Comments (6.53K) with them exiting with 10-20 billion in cash if bitcoin collapses.
TSLA fan-bois will hate this....
Reply Like
They are an emotional bunch... (edited)
Reply Like (2) Safety In Value Yesterday, 5:15 PM
Comments (1.23K)
DomL Yesterday, 9:08 AM
Comments (1.29K) Author's Reply @DomL That's definitely a possibility. Most
surprised he isn't loading coinbase. if in fact Crypto is a scam and going management team's in dying businesses squander cash trying to
to zero the amount of Fees CB will collect on the way to zero will be like make it work. The ones who successfully pivot are rare. But if they
nothing any broker has ever seen before. are coming out with $10-20 B in cash there would be lots of time
to find something new.
Reply Like (3) Reply Like
diroha Yesterday, 8:44 AM
Comments (3.5K)
Comments (1.23K)
What he does very well is he enters positions where the upside to his
Author's Reply @DomL If crypto goes to zero coinbase probably trades are multiples more than his downside. This is something Paul Tudor
has a zero terminal value though. Tough to make their current total Jones has spent a career perfecting.
valuation on the way down, even though you're definitely correct
that high volatility is good for brokers. Reply Like (6)
Not saying crypto goes to zero, but if it did I think coinbase would Safety In Value Yesterday, 11:45 AM
be a bad choice. Marketplace Contributor Premium
Reply Like (2) Comments (1.23K)
DomL Yesterday, 5:11 PM Author's Reply @diroha Great point. That's very true. Last year he
Comments (1.29K) had a bunch of equity stub dying retailers. He sold out of a few on
@Safety In Value why? it won't be a straight shot to zero you will their way to bankruptcy (eg Tailored Brands) but the multi-bagger
on Gamestop made the entire group a very profitable trade

on Gamestop made the entire group a very profitable trade.

obiwan48 Yesterday, 12:18 PM
I think that might be what's going on here. If the market keeps Comments (757)
heading up he makes a multi-bagger return on the GOOG/FB calls, @Entreri
and if it declines he makes a multi-bagger on the TSLA puts. Agree!

Reply Like (4) Reply Like
obiwan48 Yesterday, 8:19 AM
H.a.i.r.y 30 May 2021
Comments (757)
Comments (67)
I agree with most of Dr. Burry’s positioning.
Too bad he's shorting $TSLA via puts(not directly). I'd love to see Burry
Similarly, over the past 12 months or so, I’ve been holding or positioned in getting buried with that oversized position.
trades that will reflect a macroeconomic trend/establishment of a higher
inflationary bias. As we know, this will is turn will produce a rising interest Reply Like
rate climate as well. Over the past 6 months+/- We may be in fact be
witnessing an unfolding of a longer term Commodity Super Cycle.
idaustin Yesterday, 7:27 AM
Currently, long CVS, short bonds, long energy, financials, value, cyclicals,
Comments (465)
have some of Burry’s growth names. Not shorting TSLA because of
premiums
@H.a.i.r.y why would you love to see him getting buried? Are you
in options. However, Imho, TSLA will be trending lower for awhile. long tesla (and anchoring bias)?
Good luck all. Reply Like (12)
Reply Like (5)
Apple Dan Yesterday, 11:17 PM
Comments (2.35K)
Entreri Yesterday, 9:55 AM
Comments (6.65K) @H.a.i.r.y
@obiwan48 Do you have a vendetta against Burry for some bizarre reason? Do
you generally take pleasure in seeing others suffer? Sounds like
Tesla leaped many years ahead in its valuation without a catalyst you need some help buddy.
(eg FSD). 50% increase in volume and 10X+ increase in market Reply Like
cap.
That is never sustainable. H.a.i.r.y Today, 12:29 AM
Comments (67)
Reply Like (8)
@Apple Dan @idaustin I would love to see all $TSLA shorts
suffering equally Nothing personal

suffering equally. Nothing personal. y g p g p

And calls are a leveraged bet on that, obviously.
Reply Like
Similarly, TLT is an instrument that is long treasury bonds. So it will
Abysg 30 May 2021 go down if interest rates go up. So the puts are also betting on
Comments (528) increasing interest rates.
I follwed him to Gainstop at 5 ;) (edited) Reply Like
Reply Like KevinFB Yesterday, 4:53 PM
Comments (206)
@Safety In Value Thank you.
Comments (1.23K) Reply Like
Author's Reply @Abysg Nice work!
Reply Like
KevinFB 30 May 2021
Comments (206)
This article, SiV, plus your January article on interest rates, are first rate.
Thanks.
Just to be clear so I understand: Burry hedged interest rates by BUYING

calls on the ProShares TBT and TBF, as well as BUYING puts on the
iShares TLT, correct?
Reply Like (1)
Comments (1.23K)
Author's Reply @KevinFB Thanks for the kind words!

And you are correct. TBT and TBF are instruments that are short
treasury bonds. So their value will go up if interest rates go up.

Michael Burry Rolls His GameStop Profits Into Google Calls and Tesla Puts

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6/1/2021 Michael Burry Rolls His GameStop Profits Into Google Calls And Tesla Puts | Seeking Alpha

Michael Burry Rolls His

Summary Photo by Astrid Stawiarz/Getty Images Entertainment via Getty Images

NOW INC DNOW $ 7,063 700,000 Common

Bonusplus Yesterday, 6:09 PM Alter-X Yesterday, 4:52 PM

iv2006 Yesterday, 5:29 PM DontTaxMeBro Yesterday, 5:34 PM

Reply Like (3) 2. Tesla is a car company.

3. Tesla's book value is $23.

Reply Like (3)

on Gamestop made the entire group a very profitable trade.

and if it declines he makes a multi-bagger on the TSLA puts. Agree!

suffering equally. Nothing personal. y g p g p

Just to be clear so I understand: Burry hedged interest rates by BUYING

Author's Reply @KevinFB Thanks for the kind words!

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