Michael Burry a genius at stocks and other things. Among his accomplishments is that he predicted and made bank off the 2008 crash. Right now, he's betting again that things are going to go to shit for the economy, and soon.

SPY and QQQ are megafunds. SPY is a variety pack of the 500 biggest companies, more or less. QQQ is similar but tech companies.

Puts/Shorts are ways to bet that things will go down. You borrow stock today to sell, with a binding promise to buy it back later at the new price. Eg, you think Disney at $80 is going to drop to $20 because of a scandal, so you short 10 shares to get $800. If it drops to $20, you can buy the shares back for $200, and net $600 in profit. If it instead raises to $200, now you need to come up with $2,000 to cover the shares you shorted. Puts are similar, but you pay a premium to make sure you don't lose more than a certain amount if you mess up.

He thinks those stocks are going to crash, but those stocks are bundles of the entire market focusing on big companies/tech. So this guy thinks the entire market is about to get down into shitsville, and he's got a solid track record of being right. That said, he's not betting everything on this. It looks like he's betting a lot but he hasn't put up everything in a blackjack bet here.

Michael Burry a genius at stocks and other things. Among his accomplishments is that he predicted and made bank off the 2008 crash. Right now, he's betting again that things are going to go to shit for the economy, and soon.

SPY and QQQ are megafunds. SPY is a variety pack of the 500 biggest companies, more or less. QQQ is similar but tech companies.

Puts/Shorts are ways to bet that things will go down. You borrow stock today to sell, with a binding promise to buy it back later at the new price. Eg, you think Disney at $80 is going to drop to $20 because of a scandal, so you short 10 shares to get $800. If it drops to $20, you can buy the shares back for $200, and net $600 in profit. If it instead raises to $200, now you need to come up with $2,000 to cover the shares you shorted. Puts are similar, but you pay a premium to make sure you don't lose more than a certain amount if you mess up.

He thinks those stocks are going to crash, but those stocks are bundles of the entire market. So this guy thinks the entire market is about to get down into shitsville, and he's got a solid track record of being right.