Michael Burry Clarifies $9.2 Million Palantir Put Options, Not $912 Million Bet in 2025

Michael Burry, the legendary investor behind the 2008 housing crash prediction, has publicly corrected media reports that inflated his bearish position on Palantir Technologies to a $912 million notional value—revealing it was actually 50,000 put options costing $9.2 million in premium.

Disclosed in Scion Asset Management’s Q3 2025 13F filing (ending September 30), the trade grants the right to sell 5 million Palantir shares at $50 each upon January 2027 expiration. As of November 13, 2025, this clarification highlights the critical distinction between option premium and notional exposure in derivatives trading, a nuance often lost in mainstream coverage. For investors tracking options strategies, SEC filings, and market sentiment, Burry’s move offers a masterclass in disciplined bearish positioning amid 2025’s AI-driven equity boom.

What Are Michael Burry’s Palantir Put Options?

Michael Burry’s Palantir put options consist of 50,000 contracts purchased for a total premium of $9.2 million, giving Scion the right—but not obligation—to sell 5 million PLTR shares at $50 each when the options expire in January 2027. Each contract controls 100 shares, making the notional value $250 million at the strike price, though media misreported it as $912 million by conflating current market value. This long-dated LEAP structure allows Burry to maintain a bearish view on Palantir’s AI and government contract-driven valuation without immediate capital outlay beyond the premium. The position reflects classic value investing discipline: limited downside (the $9.2M cost) with asymmetric upside if PLTR falls below $50 by expiry.

• Contract Count: 50,000 puts (5 million underlying shares).
• Strike Price: $50
• Expiration: January 2027 (long-dated LEAPs).
• Premium Paid: $9.2 million total ($184 per contract).
• Max Loss: Limited to premium if PLTR stays above $50.

Why Michael Burry’s Palantir Put Options Matter in 2025

In 2025, Michael Burry’s Palantir put options matter because they challenge the prevailing AI stock euphoria, where Palantir trades at over 100x forward earnings despite inconsistent profitability—echoing the overvaluation themes Burry identified in 2008. With institutional ownership exceeding 45% and retail momentum via social platforms, his contrarian stance serves as a market sentiment barometer. The media’s $912 million error underscores widespread misunderstanding of options leverage, potentially misleading investors about risk sizing. As SEC 13F filings remain a key transparency tool, Burry’s transition to a family office (deregistering as an RIA) reduces future disclosure, making this one of the last public glimpses into his playbook.

• Valuation Signal: PLTR’s 35% YTD gain contrasts with flat EBITDA margins.
• Media Misstep: Notional vs. premium confusion distorts risk perception.
• Options Education: Highlights cost-efficient bearish exposure.
• Institutional Contrast: Most funds remain long PLTR via growth mandates.
• Family Office Shift: Ends quarterly 13F filings post-Q3 2025.

How Michael Burry’s Palantir Put Options Work

Michael Burry’s Palantir put options function via standard derivatives mechanics: the $9.2 million premium secures the right to force a counterparty to buy 5 million shares at $50 each in January 2027, regardless of market price. If PLTR trades at $40, the puts are worth $10 per contract ($50 – $40), yielding $50 million gross profit before fees—over 5x return on premium. The long expiration provides time for a thesis to unfold (e.g., defense budget cuts, AI competition), while theta decay is minimized in early years. Scion likely used cash-secured puts or collateralized via Treasury holdings, aligning with Burry’s risk-averse style.

• Payoff Structure: Max profit unlimited below $50; breakeven at $49.82.
• Delta Exposure: ~0.3 initially, rising as price nears strike.
• Volatility Role: Benefits from IV crush post-earnings if stock drops.
• Counterparty: Cleared through regulated options exchanges.
• Tax Advantage: Long-term capital gains if held over one year.

Real-World Implications and Future of Michael Burry’s Strategy

Michael Burry’s Palantir put options have real-world ripple effects: short interest in PLTR rose 8% post-filing, signaling growing skepticism, while options volume spiked 300% in OTM puts. For retail traders, it validates asymmetric betting—risking $9.2M to potentially gain hundreds of millions. Looking to 2026–2027, outcomes hinge on Palantir’s commercial AI traction and government contract renewals; a miss could trigger the bear case. Burry’s family office pivot mirrors peers like Stanley Druckenmiller, prioritizing privacy over public scrutiny. This trade may inspire value-oriented options overlays in overvalued tech, using LEAPs to express conviction with defined risk.

• Market Reaction: PLTR -3.2% in two days post-clarification.
• Options Chain Impact: 50-strike Jan 2027 puts now most active.
• Commercial Risk: Palantir’s 60% revenue from three clients vulnerable.
• Strategy Template: Low-cost, long-dated puts on high-multiple growth names.
• Legacy Play: Reinforces Burry’s role as a contrarian beacon.

In summary, Michael Burry’s $9.2 million Palantir put options—not $912 million—represent a disciplined, high-conviction bearish bet using leveraged derivatives to challenge AI hype with limited risk. This move educates on options mechanics, valuation discipline, and media literacy in 2025’s frothy markets. To follow suit, study 13F filings, model LEAP payoffs in options calculators, or review Palantir’s DoD contract pipeline—key steps for anyone building asymmetric investment strategies in volatile tech.