Renowned investor Michael Burry has taken a significant position against Oracle Corporation through put options, signaling bearish sentiment on the tech giant's future performance. The move reflects growing skepticism around enterprise software's long-term growth trajectory.
- Burry acquired over 1.2 million put options on Oracle (ORCL) with a $145 strike price
- Options expire in March 2027, suggesting medium-term bearish outlook
- Position valued at approximately $36 million based on premium levels
- Oracle shares down 15% year-to-date, underperforming major tech peers
- Put volume represents one of the largest single-name bets against Oracle in recent years
- Implied volatility has spiked following disclosure, indicating heightened risk perception
Michael Burry, known for his prescient short positions during the 2008 financial crisis, has initiated a notable options strategy against Oracle Corp (ORCL), acquiring a substantial volume of put options expiring in March 2027. The position, revealed through regulatory filings, involves over 1.2 million put contracts with a strike price of $145 per share, indicating a bet that Oracle’s stock could fall below that level by the expiration date. This strategic move underscores a shift in Burry’s investment outlook, particularly as cloud computing adoption continues to reshape the enterprise software landscape. Oracle has faced increasing competition from AWS, Microsoft Azure, and Google Cloud, pressuring its traditional licensing revenue stream. Despite recent efforts to bolster its cloud infrastructure and AI integration, the company’s stock has underperformed relative to peers over the past 18 months. The scale of the put option position—valued at approximately $36 million based on average premiums—suggests a high conviction level. Such activity is rare among institutional investors and often precedes market-moving events. Analysts note that this positioning may indicate concerns about Oracle’s ability to maintain pricing power or execute on its digital transformation roadmap amid rising operational costs and slower-than-expected cloud transition. Market participants are watching closely, as Burry’s actions have historically influenced investor sentiment. A significant drop in Oracle shares could trigger further selling pressure across the broader tech sector, especially among legacy software firms facing similar challenges. The stock closed at $162.30 on January 9, 2026, reflecting a 15% decline year-to-date as of the filing date.