Michael Burry's Timing & LEAP Opportunities Amid 2025 Market Correction
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- Reddit users debate Michael Burry’s recent moves: a top comment (score 250) speculates he paper-handed positions before the November drop, while a minor comment (score3) claims his moves are “2 for 2” successful.
- A popular take (score332) frames the current correction as an opportunity to buy S&P LEAP options, with a joke about market doom followed by a January buying call.
- The meme’s Michael Jackson comparison references his reckless spending (asset-rich, cash-poor) as a visual joke about Burry’s actions.
- Burry purchased over $1B in put options against Nvidia (NVDA) and Palantir (PLTR) in Q3 2025, and deregistered Scion Asset Management on November10 [1].
- The S&P500 has declined 10% from its peak (meeting correction criteria) and is down 4.4% in November—its worst since 2008 [3]. The Shiller CAPE ratio hit 40, a near-historic high [1].
- LEAP options offer long-term (2-3yr) exposure with less capital than stocks; deep in-the-money calls (delta ≥0.8) are recommended for bullish positions during corrections [6,7].
- Research aligns with Burry’s successful timing: his bearish bets preceded the AI sell-off (NVDA down11% in November), contradicting the paper-handing claim.
- The LEAP opportunity is echoed in both Reddit and research, but requires caution—current volatility (VIX=26.87) adds risk [5].
- Opportunities: LEAPs for S&P exposure (e.g., SPY) with reduced capital outlay [8,9].
- Risks: Volatility-driven LEAP expiration risk, potential deepening of the correction, and strike price misalignment [6,7].
Insights are generated using AI models and historical data for informational purposes only. They do not constitute investment advice or recommendations. Past performance is not indicative of future results.
About us: Ginlix AI is the AI Investment Copilot powered by real data, bridging advanced AI with professional financial databases to provide verifiable, truth-based answers. Please use the chat box below to ask any financial question.