Michael Burry tops up bearish Palantir options as AI-led optimism tests short positions

Michael Burry, the investor who became widely known after betting against the U.S. housing market before the 2008 financial crisis, is again leaning bearish on Palantir Technologies, according to a report carried by Yahoo Finance.

The report says Burry refreshed his Palantir options position by buying new out-of-the-money puts. Out-of-the-money puts are options that typically cost less than at-the-money contracts because they only become profitable if the underlying stock falls enough to move below the strike price.

Burry’s activity comes at a time when investor enthusiasm for artificial intelligence has helped lift sentiment and prices in a range of technology stocks, a backdrop the report describes as straining “short bets,” or wagers that particular equities will decline.

In the same update, the report also says Burry added to his stake in Zoetis. Zoetis is an animal-health company whose shares trade under the ticker ZTS, and the mention underscores that, alongside his hedges, Burry’s portfolio choices are not limited to a single theme.

Palantir, whose shares trade on the Nasdaq under ticker PLTR, is a software company best known for building data platforms and decision-support systems used by governments and enterprises. The company’s market narrative has often been tied to demand for analytics, deployments of data integration and governance, and, more recently, the broader push toward AI-enabled applications.

In this case, the report does not provide trade sizes, strike prices, expiration dates, or any explanation of the specific assumptions driving Burry’s Palantir stance. It also does not indicate whether the new puts are intended as a hedge against existing long positions, or as a stand-alone bearish expression, leaving the practical impact of the move unclear.

The limited detail matters because options can function very differently depending on contract terms and how much of an existing exposure they are meant to offset. Without those specifics, it is not possible to determine how aggressively Burry is positioning for a near-term drawdown versus a longer window for downside to materialize.

Going forward, market participants will likely watch whether the balance of options activity in Palantir shifts further, and whether the stock’s price action continues to reward AI-driven momentum or begins to lose traction. Any additional disclosures, including the timing and magnitude of subsequent options changes, would shed more light on whether Burry is maintaining a hedge, increasing a directional bet, or simply adjusting risk as conditions change.