The Biggest Short 🎲

Table of Contents

The Biggest Short

The hate towards short sellers seems to be at an all-time high right now. Ever since the GameStop fiasco that led to a retail revolution, traders have been hungry to find short sellers to squeeze financially, and literally if they had the ability to. However, we need to respect short sellers who have made big splashes in the market by timing their trades right before an economic crash. We have George Soros, who shorted the British pound before its collapse, we have Bill Ackman, who shorted the market before the COVID-19 stock market crash, and we have Michael Burry, the man who short sold the housing market before it crashed, a decision that was adapted into a movie dubbed “The Big Short”.

Back in May, we covered Michael Burry’s backstory and his new big short at that time, which was a bet on Tesla. Guess what? Burry made some more moves today, and they could be even crazier than the Tesla short. To begin with, Burry increased his short position on Tesla with the purchase of 300,000 put options, with the same investment thesis in place. However, the crazy part is his new bet against Cathie Wood’s ARK Invest. ARK has been one of the most famous ETFs in 2020 due to Wood’s risky, high growth investing style. The idea of anyone shorting it seems unreal, but if anyone has the guts, it’s Burry. He shorted 235,500 shares of put options against the flagship ETF, saying that the company is overvalued and the disruptive growth they talk about hasn’t been realized yet. If Burry is right on these two investments, he is set to shock everyone while making a lot of money. What do you think about this Burry bet?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.