Michael Burry buys Microsoft LEAP calls targeting 2028 gains

According to Yahoo Finance and Stocktwits reporting, investor Michael Burry bought long-dated call options on Microsoft expiring in December 2028, with reported strikes in the low $700s. Yahoo Finance and related coverage note that Scion Asset Management has stopped filing 13F reports, so public filings do not disclose the position size. GuruFocus reported that Microsoft shares rose about 1% in pre-market trade to roughly $356.30 following the disclosure. Multiple outlets summarize Burry's Substack commentary on markets and include his direct line that "Hong Kong stocks are falling hard as the chip narrative pulls capital from Hong Kong and pushes it into South Korea and Japan," per Stocktwits.

Editorial analysis - technical context: Long-dated equity call options, commonly called LEAPs, provide multi-year convex exposure to price upside while capping initial capital outlay; they expire worthless if the underlying does not reach the strike by expiry. Reporting from Yahoo Finance highlights that LEAPs can lose 100% of their value, a standard risk profile for options buyers. For market participants, LEAP purchases on large-cap cloud names like Microsoft function as concentrated directional bets on multi-year revenue and margin expansion tied to cloud, AI services, and enterprise adoption.

Public coverage frames this trade inside a larger investor narrative that AI and cloud infrastructure are central to corporate valuations. Microsoft's scale in cloud compute, enterprise software, and AI tooling places it at the center of that debate; outlets including AOL and other market commentary note Microsoft-facing catalysts such as Azure growth, CapEx intensity, and Copilot monetization that investors watch closely. The trade is notable because it comes from a high-profile contrarian investor and because long-dated options can amplify the market signal even when the notional capital committed is undisclosed.

Observers should follow several measurable indicators rather than infer internal intent. First, publicly reported Azure growth and guidance in Microsoft earnings releases will move the fundamental narrative; analysts and outlets have highlighted near-term guidance as a key catalyst. Second, changes in implied volatility and option open interest for the December 2028 strikes will reveal whether other traders are taking on similar multi-year convex exposure. Third, any future disclosures or resumed 13F filings from Scion would clarify position size; currently, coverage emphasizes that the trade magnitude is unknown. Finally, market rotation into semiconductor and AI-infrastructure themes, which Burry referenced in his Substack, remains an observable macro flow to watch across global indices and sector performance.

Industry observers note that high-profile investors sometimes use LEAPs to express a long-term view while keeping capital deployment flexible; comparable historical moves have driven short-term price moves and renewed analyst attention without guaranteeing long-term outcomes. For practitioners building or buying AI services, the scaling choices of cloud providers and their CapEx cadence matter more directly than headline trades, but such trades can accelerate attention and capital flows into infrastructure names.

This is a public, high-profile long-dated bullish option position on Microsoft as reported by multiple market outlets. The trade is an expression of a multi-year upside conviction but, per reporting, the position size is not publicly known. Observers should track company fundamentals, option-market activity, and broader capital rotation into AI and semiconductor themes to assess whether market pricing is aligning with the underlying operating signals.