Michael Burry Eyes SpaceX Short But Balks at Options Cost
The 'Big Short' investor sees SpaceX valuation as stretched but won't pay up for pricey puts. Here's what that signals.
Michael Burry — the guy who called the 2008 housing collapse — is eyeing SpaceX with serious skepticism. He says he's tempted to bet against the company, but he's passing. The reason? Options are just too expensive to make the trade worth it right now.
Burry's argument cuts straight to the point: SpaceX's market cap has ballooned to levels that tower over many well-established businesses and personal fortunes. That's the kind of valuation disconnect that historically gets Burry's attention. He built his career spotting exactly these moments — when price runs way ahead of reality.
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But here's the tradeable insight — Burry isn't pulling the trigger. When a seasoned short-seller smells blood yet still walks away, that tells you something about the risk-reward setup. Sky-high implied volatility in the options market means you're paying a steep premium just to be right. Even if the thesis is correct, the cost of being early can wipe you out before the trade works.
For retail traders, this is a masterclass in discipline. Conviction without an edge isn't a trade — it's a donation. Burry is essentially saying the valuation is absurd, but the vehicle to profit from that absurdity is too costly right now. Timing and execution matter as much as the idea itself.
SpaceX remains private, which adds another layer of complexity for anyone looking to act on a bearish thesis. Without a liquid, publicly traded share structure, options markets on any related plays become the only indirect route — and apparently even Burry doesn't like the price. Continue reading at US Top News and Analysis.
