Hello fellow Rebel capitals, hope you're well.

So Michael Burry has come out and put a 1.6 billion dollar bet

that the stock market will crash. Let's get right into this story. Check out what's going on here.

Michael Burry, obviously from the big shorts to a screen share. Everyone knows who Michael Burry is, made a killing on the

housing crash and the GFC. Now they're saying this is the big short take two. Michael Burry's 1.6 billion dollar short bet against

SP 500 and NASDAQ 1,100 excuse me Michael Burry Sion asset management held

puts with a total contract value of 886 million and that was

S&P and then 739 million against the NASDAQ. Now there is a quite a bit of nuance here so it's not

like he's taking out 1.6 billion dollars out of his pocket and just shorting the S&P 500 or the NASDAQ.

Now what he's doing is he's buying puts.

So the way this works is he's going to buy a contract that basically gives him the right to sell 886

well 1.6 billion dollars worth of shares at a specific price at a specific time.

So the way this works is it's based on probabilities.

So let's just say that you have a date selected for January 1st, 2024, And let's assume for a moment that the share price of the QQQ is $1.

Okay. Or that's what your strike price is. Let's say right now it's at $1.50 and you think it's going to go down. So your strike price, $1, and that's January 1st. That's the expiration date of the contract.

And you're buying the right to sell 739 million.

Okay, great.

So let's just assume for a moment that it goes down to a dollar, the share price, within the next week.

Okay, well the value of those contracts is going to go parabolic.

It's going to go through the roof, but you're not paying 1.6 billion for those contracts.

You're paying a lot less than that.

Let's just say, I don't know, 50 million, 100 million, whatever it is, maybe even less,

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