Michael Burry Boosts Short on Nvidia, Buys Call Options as Hedge

Burry's decision to layer call options over an expanded short is a notable structural hedge, signaling that even committed bears see two-sided risk in Nvidia's current valuation. The move underscores how crowded the AI chip trade has become, with high-profile contrarians willing to pay for downside protection against a potential squeeze. For the broader market, this is less about Burry's track record and more about what it implies for positioning: if a prominent short seller is hedging upside, volatility expectations around chip earnings and sentiment may stay elevated. Whether this reflects a broader institutional shift or remains a lone contrarian stance is the key dynamic to monitor.