“Big Short” Burry dumps Caterpillar (CAT.US) put options after their value quadrupled, cutting his short position by 75%

According to Jinse Finance, renowned investor and “The Big Short” figure Michael Burry has reduced his short position in heavy equipment manufacturer Caterpillar (CAT.US) by 75%—after the value of his put options in the company roughly quadrupled. Burry disclosed this move in a post on his Substack newsletter, Cassandra Unchained.

“The value of my Caterpillar put options roughly quadrupled, and today I reduced the position by 75%,” Burry wrote in his November 6 post.

He also stated that the market value of his remaining position is now roughly equivalent to the initial investment amount he started with at the end of the second quarter.

Caterpillar’s share price fell by 10% last week, marking its largest weekly decline in 18 months. Concerns about the stock’s valuation, production constraints, and uncertainty around artificial intelligence-related spending have put pressure on its price.

While trimming his Caterpillar holdings, Burry continues to maintain short positions in other areas of the market. In an earlier Substack post, he noted that he had consolidated most of his short exposure into put options on the Nasdaq 100 and the VanEck Semiconductor ETF (SMH), while retaining puts on individual stocks such as Oracle (ORCL.US), Palantir (PLTR.US), MetLife (MET.US), and Caterpillar.