Michael Burry's New Bet Against Micron Stock Expires in June 2027. I Think His Timing Is Off.
The "Big Short" investor's new trade needs the stock to drop by around half by next June. Does he have enough time?
Overview
Michael Burry was already betting against Micron Technology (NASDAQ:MU). On Sept. 28, the investor famous for calling the housing crash told his newsletter subscribers that he'd traded that short position for put options expiring in June 2027, with strike prices in the $500 range.
With the memory chipmaker's stock at around $1,065 as I write, those puts only pay off at expiration if the shares lose about half their value in under nine months.
Details
Two days after Burry's post, Micron reported the biggest quarter on record. Revenue grew 379% year over year to $54.2 billion. And management said it still can't tell when the shortage driving those numbers will end.
Source
Originally published at www.fool.com.