Michael Burry, the investor known for 'The Big Short,' disclosed fresh portfolio moves on Friday involving Nvidia Corp, Oracle Corp., DraftKings Inc., and Netflix. Burry increased his December 2026 Nvidia put position while trimming Oracle puts by half, and added to DraftKings shares in the $25 range. The adjustments come as Burry cited high valuation and margin pressure for Nvidia, position-sizing concerns for Oracle, and an unchanged investment thesis for DraftKings.
Burry Increases Nvidia Puts and Reduces Oracle Position
Burry stated in a Substack post that he purchased additional December 2026 Nvidia puts struck in the low $100s, describing the addition as "pocket change." He said Nvidia stock has remained expensive, with significant margin and earnings risks over the next five years. "With volatility in the stock minimal, and the VIX holding in, I bumped the position up," Burry wrote.
The investor also disclosed that he sold half of his Oracle January 2027 puts struck in the low-to-mid $100s. Burry explained the position had become "too big" and that he does not "fall in love with options trades that go well." He added, "I maintained short exposure here by retaining half."
Burry Adds to DraftKings Holdings
Burry said he added to his DraftKings position in the $25 range, noting "no change in the basic thesis." He indicated plans to write more about DraftKings and Flutter Entertainment in detail, and referred readers to his July 8 trading post where he described the thesis and valuation.
Burry Questions Netflix Content Durability
Burry discussed Netflix in detail after the stock closed at $74.35 on Thursday, following a peak at $134 in June of 2025. Netflix reported earnings after Thursday's close and traded down sharply following the results. Burry questioned whether Netflix produces content "that is long-lasting, watchable on repeat, across generations." He compared the company with Disney and Pixar, which he said "produce evergreen content," and questioned whether Netflix's content library can create similar long-term value.
"Generally, I think of it this way. Disney produces wine. Netflix produces milk," Burry wrote, explaining that one improves with time while the other is "just fine for now" but does not get better with age. He said Netflix's ability to create evergreen content will determine whether the company is a "Castle or a Chapel." Using his "Chapel" valuation, Burry stated Netflix at $67.75 was about 1.6 times intrinsic value, with the stock needing to fall into the low $50s to become closer to a "Fat Pitch."
Retail Sentiment Across Four Stocks
On Stocktwits, retail sentiment for NVDA was 'bullish' with 'normal' message volume. ORCL saw 'extremely bullish' sentiment alongside 'extremely high' message volume. DKNG had 'bearish' sentiment with 'normal' message volume, while NFLX recorded 'extremely bullish' sentiment alongside 'extremely high' message volume. NVDA stock has gained more than 8% year-to-date, while ORCL, DKNG, and NFLX shares have declined nearly 35%, 29%, and 27%, respectively, during the same period.
FAQ
Why did Michael Burry increase his Nvidia put position?
Burry stated Nvidia stock has remained expensive, with significant margin and earnings risks over the next five years. He said volatility in the stock was minimal and the VIX was holding in, prompting him to increase the December 2026 put position struck in the low $100s.
What is Burry's valuation approach for Netflix stocks?
Burry used a "Chapel" valuation framework for Netflix. At $67.75, he calculated the stock was about 1.6 times intrinsic value. He stated the stock would need to fall into the low $50s to become closer to a "Fat Pitch" investment opportunity.
