Headline: Burry Targets Palantir With Tactical Puts as Stock Whipsaws Around Earnings
Key Takeaways
Introduction: Michael Burry, the contrarian investor behind The Big Short, has placed a bearish wager against Palantir Technologies. His Q3 2025 13F filing reveals put options tied to roughly five million PLTR shares, signaling skepticism toward one of the market’s most discussed AI and data analytics names. With Palantir surging into record territory before earnings and then sliding sharply, traders are debating where Burry likely entered—and whether the position is in the green.
During Q3, Palantir traded between about $129 and $190, with momentum accelerating after its early August earnings. The stock broke key resistance in late October and pressed to fresh highs near $200–$207 just ahead of the next report. That trajectory would have pressured shorts initiated near the quarter’s midpoint (~$156) or even after August (~$164–$180). However, the post-earnings reversal offered a quick payoff window: after topping out on November 3, PLTR fell roughly 18% to the $168–$170 area within days, easing the squeeze on late entries or scaled-up positions near the highs.
Whether Burry is currently profitable depends on timing and sizing. An average entry around $164 would still be challenged with the stock near $178 on November 8, while positions established closer to $180 could be near breakeven. Adds in the $200–$207 zone into earnings likely captured 15%–18% on the subsequent decline. Burry’s options trades often span 45–90 days, suggesting the clock remains in his favor if the bearish thesis leans on catalysts and volatility rather than a long-term bet. The broader lesson for traders: in high-beta AI stocks, precision on entry, patience for exhaustion moves, and active risk management—such as partial profit-taking—can make the difference between conviction and drawdown.
Key Points: – Scion Asset Management disclosed put options tied to about five million Palantir (PLTR) shares in its Q3 2025 13F filing. – PLTR ranged roughly $129–$190 in Q3, then broke resistance and hit new highs near $200–$207 ahead of earnings. – Shares reversed after the peak, sliding about 18% to the $168–$170 zone, relieving pressure on late-quarter shorts. – Profitability hinges on entry price: ~$164 likely negative at ~$178; ~$180 near flat; entries near $200–$207 saw 15%–18% gains on the drop. – Burry typically holds puts 45–90 days, aligning with tactical, catalyst-driven trades rather than long-dated shorts. – Key tactics for AI momentum names: wait for exhaustion, prioritize timing, and use partial profit-taking to manage risk.
Context
Current positioning around Market Analysis remains sensitive to primary-source updates, policy interpretation, and execution risk across major venues.
What To Watch
Key confirmation signals include sustained spot demand, funding stability, and whether price can hold reclaimed levels after headline-driven volatility.
If momentum weakens, traders will likely prioritize downside liquidity zones and risk-control positioning before adding new directional exposure.
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