Recently, Tesla's stock price has continued to climb, constantly approaching the all-time high of $900, and Musk has once again become the world's richest man. On this occasion, Michael Bury, the archetype of the movie "The Big Short", recently announced that he is no longer shorting Tesla.
According to CNBC recently reported, Scion Asset Management, the prototype of the movie "Big Short" Michael Burry, is no longer short tesla stock through put options.
Michael Burry told CNBC via email that the media exaggerated his bet on short Tesla and that it was just a deal.
"No, that was a deal in the past," Burry told CNBC when asked if he was still shorting Tesla. "Option bets are extremely asymmetrical, and media coverage is several orders of magnitude different."
At the end of the first quarter, Scion Asset Management disclosed 800,000 Tesla bearish positions, worth $534 million, according to a 13F filing. By the end of the second quarter, the position had expanded to more than $1 million, worth $731 million at the time.
Put options give holders the right to sell shares at a determined strike price in the future. If the stock falls below the strike price before expiration, the value of the put option increases.
Shares of electric car maker Tesla are up 24 percent so far this year and recently returned to a price level of $800 over the company's strong third-quarter delivery data.
Tesla's rise in 2021 has made Burry less likely to make a profit on its bearish positions, but with the recovery of cyclical stocks earlier this year, growth stocks lost favor among investors, and Tesla's stock did fall nearly 40 percent from an all-time high.
In addition, since the strike price or expiration date of a Burry put option is not known, it is not possible to judge whether the position will ultimately be profitable.
Previously, Bury had called Tesla's valuation of more than $800 billion "ridiculous" and told CEO Elon Musk on Twitter that he should raise more capital and sell shares to take advantage of such a high price.
However, Kynikos Associates founder and big short Jim Chanos revealed on Monday (October 18) that he still maintains short positions against Tesla and IBM.
Chanos said he still maintains a short Tesla position of just over 1 percent, quipped: "We're still hitting brick walls with our heads." ”
This article originated from FX168
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