The “Big Short” investor passed on a "tempting" bearish SPCX put trade, saying he'd rather see the stock settle in the mid-$200s than bet against it.
- Burry said he currently has no position in SpaceX: "Neither short nor, ahem, long."
- Burry noted that SPCX's $2.8 trillion market cap is backed by less than $20 billion in annual revenue.
- He said that SpaceX's valuation could buy the fortunes of Bezos, Zuckerberg, Buffett, Huang, and other top billionaires and still leave $1 trillion remaining.
"The Big Short" investor Michael Burry declined a "tempting" bearish options bet on SpaceX (SPCX) after its options market launched, saying he would rather see shares settle in the mid-$200s than bet against one of Wall Street's hottest post-IPO trades.
SPCX shares have climbed 50% above their $135 IPO price, pushing the company's market cap to $2.8 trillion and placing it among the world's most valuable companies.
On Tuesday, SPCX jumped 5%, while leveraged long SpaceX ETFs also rallied. The Tradr 2X Long SpaceX Daily ETF (SPCM), Defiance's 2X SpaceX ETF (SPCL), Defiance Daily Target 2X Long SpaceX ETF (SPCU), and Leverage Shares 2X Long SPCX Daily ETF (SPCH) all gained about 10%.
Meanwhile, bearish funds slumped, with the Leverage Shares 2X Short SPCX Daily ETF (SSPC) falling 10% and the Defiance Daily Target 2X Short SPCX ETF (SPCQ) dropping 11%.
Burry Passes On Bearish SPCX Trade
In a fresh Substack post analyzing SpaceX's newly listed options chain, which debuted on Tuesday amid record-breaking trading activity, Burry highlighted several long-dated put contracts in SpaceX. He noted that a December 2028 put option with a $100 strike price was trading at $25, while SPCX shares traded around $212. A June 2027 put with the same strike cost about $13, while a December 2026 put with the same strike cost about $6.75.
The famed investor admitted the shorter-dated contract caught his attention: "Tempted by that one. But no thank you." Rather than betting on a decline, Burry said, "With any luck SPCX will settle up here in the mid-$200s, and vol will drain out of put option chain."
Despite examining bearish trades, Burry said that he currently has no position in the stock: "I am not involved with SpaceX now. Neither short nor, ahem, long."
Burry Breaks Down SPCX's Valuation
Burry contrasted SpaceX’s massive valuation with the company's revenue base: "At $2.8 TRILLION market cap, SpaceX, which is fundamentally a small space company, a niche telecom, a bedeviled social media company, and a Coreweave-light, has less than $20 billion in total revenue."
To explain the enormous size of the valuation, Burry compared it to the fortunes of some of the world's richest individuals. "With that $2.8 trillion, SpaceX's market cap could buy Page, Brin, Bezos, Zuckerberg, Ellison, Arnault, Huang, Buffett, and Ortega and still have $1 trillion left over," Burry said. He added that SpaceX's market value is larger than the economies of Russia, Italy and Canada, while noting that Berkshire Hathaway has been "eclipsed 2 1/2 times over in just three days."
Burry also said that SpaceX could buy every publicly traded U.S. aerospace and defense company and still have enough money left over to purchase every gold miner and airline in the world.
Options Mania Grips SPCX
Burry's comments come as SpaceX options recorded one of the busiest launches in market history. Over one million options contracts changed hands on the first day of trading, making it the largest options debut on record. Investors overwhelmingly favored bullish call options, with traders piling into contracts that would require significant additional gains in SPCX shares to become profitable.
The frenzy has been fueled by the stock's limited public float, aggressive retail participation, and expectations that major index additions will drive further demand in the coming weeks.
Burry Shuts Down Discord Rumors
Separately, Burry pushed back on X against rumors that he was operating a private Discord server or sharing investment advice through online chat groups. "I am not on Discord," he said, addressing posts circulating on X that attributed advice on SpaceX and several other stocks to him.
One viral post attributed a detailed trading strategy to Burry, while another user warned of an account allegedly requesting $1,950 for "lifetime" Discord access while claiming to represent the investor. Screenshots shared online appeared to show messages requesting payments and offering exclusive access to Burry's investment views.
How Do Retail Traders Feel About SPCX?
On Stocktwits, retail sentiment for SPCX slipped slightly to ‘bullish’ from ‘extremely bullish’ levels a day ago amid a 123% jump in 24-hour message volumes.
One user said, “$SPCX one thing I've learnt, never short a high momentum stock, I'm a bear but not a short, become a short on weakness only xd.”
View this Stocktwits post
Another user said, “If any of you think this is an easy short here , think again . The risk vs reward is so tilted against you.”
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