Michael Burry discloses bullish options bet on Microsoft with long-dated calls priced far above the stock

Michael Burry, the hedge-fund manager made famous in the book and film “The Big Short,” disclosed that he has taken a sizable options position on Microsoft. In a post published on Substack last week, he said he bought December 2028 “LEAP” call options on Microsoft, choosing strikes near $700.

LEAPs are long-dated equity options, meaning they give the buyer the right to purchase a stock at a set strike price for an extended period, rather than a matter of weeks. In this case, the bet is structured to profit if Microsoft’s share price rises substantially by the end of 2028.

According to the report circulating in market coverage, Microsoft shares were trading roughly in the $356 to $360 range when the options were described, putting the near-$700 strike at a large premium to the prevailing stock price. That gap implies the strategy depends on a significant move upward over the life of the contracts.

The disclosure also highlights the growing role that derivatives can play in how high-profile investors express views on large technology companies. Unlike buying shares outright, long-dated calls cap losses to the premium paid, while allowing upside if the market re-rates the company more aggressively than expected.

Microsoft, meanwhile, has remained a central holding in many large-cap technology portfolios due to its scale across productivity software, cloud services, and data platform products. The market has also increasingly focused on the company’s AI-related software and infrastructure, areas that can influence expectations for long-term revenue growth and margins.

Even so, the Substack post and the market write-up did not provide additional numbers that would let outside observers size the position precisely, such as the number of contracts, the total dollars invested, or whether the trade is part of a larger hedged structure.

For readers tracking the call, the key missing details are how Burry selected the specific strike near $700 and what assumptions sit behind the timing into December 2028. Options disclosures of this kind are also silent on the path of expected share price volatility, which can materially affect the cost and performance of long-dated calls.

Going forward, what to watch is whether Microsoft’s subsequent performance, analyst forecasts, or guidance changes align with the kind of upside implied by a near-$700 strike by late 2028. If the stock does not trend high enough, the option could expire with reduced value, regardless of any shorter-term momentum.