Michael Burry's Timing & LEAP Opportunities Amid 2025 Market Correction

Reddit Factors

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.

Research Findings

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].

Synthesis

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].

Risks & Opportunities

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].

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