Michael Burry Reduces Portfolio Risk, Exits Nvidia (NVDA) and Palantir (PLTR) Put Options Ahead of ‘Interesting’ Fall

Key Takeaways

• Michael Burry closed out his December 2026 put options on Nvidia and Palantir and chose not to roll them forward
• The investor revealed he “pulled in risk” during September and is content holding cash as he monitors market conditions this fall
• His top three long holdings remain Lululemon, Molina Healthcare, and MercadoLibre
• Oracle, Palantir, and Nebius continue to lead his short positions, with Nvidia and the iShares Semiconductor ETF also featured prominently
• Position sizes were reduced across his entire portfolio, though the relative ranking of holdings stayed consistent

Michael Burry, the renowned investor who famously anticipated the 2008 subprime mortgage crisis, announced on Wednesday that he’s scaling back risk exposure throughout his investment portfolio.

In a Substack update, Burry disclosed that he reduced risk during September. He indicated he’s now comfortable maintaining a cash position as he observes how financial markets evolve through the autumn months.

He remarked: “This will be an interesting market this fall.”

Burry Closes Out December 2026 Put Contracts on Nvidia and Palantir

Burry completely liquidated his December 2026 put option positions on Nvidia and Palantir. According to his statement, he exited these positions to circumvent the accelerating time decay inherent in options contracts.

Notably, he chose not to extend these positions into later expiration dates. This signals he’s no longer holding these particular bearish instruments.

That said, this doesn’t represent a complete abandonment of his pessimistic outlook. Burry continues to maintain 2027 put options on Palantir and the Invesco QQQ Trust Series 1 ETF.

Additionally, he retains short positions across multiple technology, semiconductor, and artificial intelligence-focused stocks.

In response to the announcement, Palantir shares dipped 0.2% during morning trading. Nvidia stock declined 0.5%.

On Stocktwits, retail investor sentiment surrounding Palantir stayed in bearish territory. Nvidia sentiment shifted from neutral to bearish.

Portfolio Structure Stays Consistent Despite Trimming

While Burry reduced his long holdings, he noted that the fundamental hierarchy of his positions by size remains intact.

Lululemon continues to occupy the top spot among his long positions, which he characterized as a “fat pitch” just last week. Molina Healthcare and MercadoLibre maintain their second and third positions.

His complete long portfolio encompasses Zoetis, Sprouts Farmers Market, JD.com, Adobe, PayPal, Fiserv, Flutter Entertainment, Fannie Mae, Freddie Mac, Veeva Systems, and Build-A-Bear Workshop.

Regarding short positions, Oracle holds the top ranking. Palantir and Nebius Group occupy the next two slots. Nvidia and the iShares Semiconductor ETF complete the top five short holdings.

Additional short positions in his portfolio include Micron Technology, Caterpillar, and CoreWeave.

Burry scaled back these short positions proportionally but avoided closing them entirely or changing their relative order.

He also mentioned he’s monitoring the declining Dollar Spot Index and intends to discuss currency markets in an upcoming post.

Burry’s recent portfolio adjustments arrive as markets enter what he characterizes as an “interesting” fall period, with the investor opting to decrease exposure instead of establishing new positions currently.

The post Michael Burry Reduces Portfolio Risk, Exits Nvidia (NVDA) and Palantir (PLTR) Put Options Ahead of ‘Interesting’ Fall appeared first on Blockonomi.