Burry bought 350,000 call options on UNH in Q2 (revealed in August 13F). Buffett and Tepper also went long the stock.
What caught my attention: After the filing dropped August 14, UNH gapped up 14% immediately. Then it went sideways for 11 days, classic consolidation that probably crushed IV on calls.
Then August 25, volatility expanded again and the stock ran another 14%.
So we had two 14% moves with dead zone in between. Anyone who bought calls after the initial gap got theta burned during consolidation. Those who waited for the volatility expansion after the flat period caught the second wave.
Might be worth tracking such patterns on other 13F plays, initial pop, consolidation, then second move.
Burry's UNH calls – interesting volatility pattern after 13F
byu/AnyDegree9109 inoptions
Posted by AnyDegree9109
1 Comment
I don’t know what you mean by UNH did nothing on Aug 14. It actually gapped up 30 points AH once the filing dropped.