Michael Burry Says This Looks Like the Dotcom Bubble. He Is Shorting Five Names

Stock market news and options trading: Michael Burry is short Nvidia, Tesla, Caterpillar, Applied Materials, and SMH with long dated puts, calling today's market a dotcom repeat. Mike Butler breaks down the skew: every single one of these names has call skew, which means the puts are cheaper than the calls equidistant from the stock price. That actually helps Burry's trade. The question is which name cracks first. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Michael Burry is back, shorting five AI winners 00:19 Nvidia, Tesla, Caterpillar, AMAT, SMH all with puts 00:34 AMAT and Caterpillar trading above Wall Street targets 00:41 Nvidia is the lowest valuation of the group 00:49 Long dated puts, not short stock: defined risk 01:06 Low IV makes put buying cheaper and the math better 01:42 Jermal: I don't follow these guys anymore 02:18 Which name breaks first? Probably the weakest already 02:44 AMAT high IV, Caterpillar at $1,000, wild moves 03:55 Every name has call skew: puts are the cheaper side 04:28 Call skew means less premium to get downside exposure 05:17 But downside moves depress extrinsic, capping the multiplier 05:45 If puts had skew instead, Burry's trade would cost more #tastylive #michaelburry #nvidia #tesla #caterpillar #appliedmaterials #optionstrading #mathcheck #callskew #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.