TREE NEWS reports: Investor Michael Burry, known for shorting the US housing market before the 2007-2009 financial crisis, said he is converting his short positions in key AI stocks into put options to gain more cost-effective leverage over a shorter time frame. “Fundamentally, I am moving the timeline forward,” Burry wrote in his Monday investment newsletter, adding that options are relatively cheap because volatility measures such as the VIX are unusually tight.
Burry Converts AI Short Positions to Put Options, Sees Bubble Bursting Sooner
AI take
Burry's shift from outright shorts to puts is a bet on timing, not just direction: he is paying for convexity because he expects the unwind sooner than a cash short would reward. The detail that matters is his stated reason — cheap volatility — which means the trade only works if realized volatility arrives before time decay erodes the premium. Whether the AI complex's calm actually breaks, rather than persisting, is the open question this positioning now hinges on.
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