Michael Burry Cuts 25% of Chip ETF Puts, Keeps a Very Large Position

Investor Michael Burry said Nov. 5 he cut his put position on VanEck Semiconductor ETF (SMH) by 25%, describing his remaining contracts as “very large” while retaining other bearish options positions.

His other remaining puts cover Palantir, Oracle, Caterpillar and the Nasdaq-100. The reduction follows Burry’s October repositioning into Nasdaq-100 and SMH puts, when he shifted most of his bearish exposure into those trades.

A put lets its holder sell an asset at a fixed price before the contract expires. Burry has used the contracts for bearish bets on the chip ETF and Nasdaq-100. The mix pairs a semiconductor fund with puts on individual companies and a broader stock index.

Burry also increased his long position in MercadoLibre, buying shares below $1,500 after the company reported earnings. That share purchase added a stock position to the same update in which he reduced part of his bearish SMH exposure.