Michael Burry says he shorted Micron at $1,051.87, citing valuation and cycle risks

The investor behind “The Big Short” said put options were too expensive and argued Micron’s stretch above its 200-day moving average was the widest since 1984.

Summary

Michael Burry said he directly shorted Micron stock at $1,051.87 and argued the memory-chip maker faces meaningful downside risk. In a Substack post, he said put options were too expensive, making a direct short more attractive, and pointed to valuation, technical patterns and the industry cycle as reasons for his bearish view. Burry also said Micron’s deviation from its 200-day moving average (a long-term price trend indicator) was the largest since 1984, exceeding the level seen at the peak of the dot-com bubble.

Terms & Concepts
  • put options: Contracts giving the right to sell at a set price
  • 200-day moving average: A widely watched long-term average price indicator
  • shorted: Sold borrowed shares to profit from a price decline