Eseandre Mordi
Nvidia (NVDA) shares kicked off Monday's session under pressure, dropping 2.56% to $201.59 as the options market signaled a sharp shift in trader sentiment. The decline followed legendary investor Michael Burry's revelation of a short position against the semiconductor giant, reigniting questions about whether Nvidia's sky-high valuation can keep pace with expectations after its AI-fueled rally.
Options Data Shows Strong Bearish Positioning
Trading data from unusual_whales revealed a pronounced tilt toward put options during Nvidia's pre-market session on November 4, 2025. As the stock slipped from around $203 to $201, bearish bets accelerated sharply. By 7:32 AM, NVDA was trading at $201.58 with volume hitting 689K shares and total options premium reaching $375.3 million.
The net premium stood at –$40.5 million, with net put premium at $3.67 million and net call premium deeply negative at –$36.87 million. The data showed NVDA's price declining steadily through early trading while call premium turned increasingly negative, indicating traders were pulling back from bullish positions. At the same time, put premium expanded as demand for downside protection surged.
Burry's Short Amplifies Market Caution
Michael Burry's newly disclosed bearish position has added fuel to an already cautious market mood. The investor famous for his contrarian calls and his role in The Big Short tends to spark volatility whenever he makes a move, especially in high-flying tech stocks. This time, his bet aligns with a broader cooldown in AI-related names. Traders responded quickly by adjusting portfolios, shorting calls, and loading up on puts as they brace for a possible pullback after months of record-breaking performance from Nvidia.
AI Dominance Meets Near-Term Headwinds
Nvidia still dominates the AI chip and GPU market, but investors are getting edgy about stretched valuations. There are growing concerns about whether demand can keep up with lofty earnings forecasts, especially as competition heats up from AMD and Intel. The combination of technical weakness, heavy options activity, and Burry's short disclosure has put Nvidia squarely in the spotlight, testing whether investor confidence can hold steady ahead of the company's next earnings release.
Eseandre Mordi
