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Michael Burry Buys Multi-Year LEAP Calls on Microsoft

The purchase reflects a contrarian bet that Microsoft can mount a large rally by December 2028 using long-dated options.

Overview

  • Burry disclosed on June 25 that he bought December 2028 LEAP call options on Microsoft with strike prices in the low $700s, converting an April long into a multiyear options stake.
  • He told investors the $350 area was a good place to buy and described the recent software selloff as technical pressure rather than broken fundamentals, according to TipRanks and Stocktwits.
  • Microsoft shares jumped after the disclosure, opening about 4.09% higher and finishing the next session up roughly 5.2% as money rotated from chip names into software.
  • The calls require Microsoft to roughly double from recent lows to pay off by late 2028, which creates large upside if correct while capping Burry’s loss to the premiums paid.
  • The trade sits against a backdrop of Microsoft losing more than $1 trillion in market value since October 2025 after heavy planned AI capital spending and higher memory costs, and it follows Burry’s wider 2026 pattern of buying beaten-down names and shorting crowded favorites.