Michael Burry bets 93% of Scion AM on stock market crash

The US market was bet against by the renowned American investor.

Put options on the decline of US stock indices held the greatest portion of the Scion AM portfolio.

Michael Burry, the hero of the movie "The Short Game", followed through on his bet of the fall of the S&P 500 and Nasdaq 100 indices by buying put options in the second quarter, as evidenced by the 13 F declaration submitted to the US Securities and Exchange Commission (SEC).

By purchasing a put option, the trader takes a short position, meaning they are betting on the fall of an asset and hoping to make money from it, according to RBC. This option gives the buyer the right to sell the asset at a fixed price on or before a certain date.

Scion Asset Management hedge fund's total portfolio was comprised of 93.59% put options.

The investor sold all Chinese stocks, as well as a selection of US bank and energy stocks, and purchased a pool of US stocks instead.

The following securities were purchased: Expedia (EXPE), Charter Communications (CHTR), Generac (GNRC), CVS Health (CVS), as well as 40 additional ones.

The share of RealReal (REAL) in the luxury goods sales network saw the greatest increase among the current positions.

Famed for his prescience in foreseeing the 2008 financial crisis, Michael Burry was one of the first to anticipate the collapse of the real estate market and mortgage lending.

Burry's wager against the US housing market resulted in a $700 million windfall for investors in the Scion fund, inspiring the movie "The Big Short".