Overview
- Scion Asset Management’s latest SEC filing shows put options valued at roughly $187.6 million on Nvidia and $912 million on Palantir as of Sept. 30.
- Following the disclosure, Palantir fell about 8% and Nvidia nearly 4% on Tuesday, while the Nasdaq lost 2.04% and the S&P 500 declined 1.17%.
- Palantir CEO Alex Karp publicly denounced the wager as “batsh-t crazy,” arguing the companies targeted are generating strong profits.
- Unlike an earlier Scion filing that said some puts might hedge unreported longs, this one omitted that language; Scion also reported call options on Pfizer and Halliburton and fewer total positions at quarter-end.
- The bets intensified scrutiny of lofty AI valuations and market concentration, with investor surveys and major bank CEOs flagging the risk of a coming drawdown.