Michael Burry Places Big Bet on Microsoft with LEAP Call Options

Michael Burry, the legendary investor famous for his 'Big Short' bet against the housing market, disclosed a new trade on Substack last week. He purchased December 2028 LEAP call options on Microsoft (NASDAQ:MSFT) with a strike price near $700, while the stock was trading around $356-$360.

Trade Details

• Instrument: LEAP call options
• Underlying: Microsoft (MSFT)
• Strike Price: ~$700
• Expiration: December 2028
• Stock Price at Time: ~$356-$360
• Disclosed via: Substack

Rationale

The bet is not a simple stock purchase; it's a leveraged bet on a significant rise in Microsoft's share price over the next few years. LEAP options provide amplified upside exposure with limited downside (the premium paid). The high strike price ($700) suggests an expectation of a rally exceeding 100% from current levels.

Context

Microsoft is one of the world's largest technology companies, with a market cap exceeding $2.5 trillion. Burry's investment comes as the company continues to grow in cloud computing and artificial intelligence.

What This Means for Investors

This trade reflects Burry's personal view and is not necessarily a buy recommendation. Investors should consider the risks of LEAP options, especially given the strike price is well above the current stock price.