Michael Burry cites high options costs as reason for avoiding bearish trades on SpaceX, questioning its near $3 trillion valuation.
Michael Burry, known for his prescient housing market bet, said he reviewed but passed on bearish options trades tied to SpaceX, citing prohibitive pricing. The investor noted a December 2028 put option with a $100 strike price cost $25 per contract, while shorter-dated options traded at $13 and $6.75.
Burry questioned SpaceX’s nearly $3 trillion market valuation, comparing it to Berkshire Hathaway’s market cap and noting the company’s less than $20 billion in annual revenue. He described SpaceX as a combination of niche businesses, including a small space firm and a telecom provider.
Despite his skepticism, Burry remains uninvolved in SpaceX, neither short nor long, and suggested volatility in put options may decline if the stock stabilizes near $200.