‘The Big Short’ Michael Burry’s Scion Asset Management reversed its course on Chinese equities, rebuilding exposure to Alibaba (NYSE: BABA) through call option contracts in Q2 2025, even after fully liquidating its prior direct stake earlier this year.
Scion disclosed 250,000 call options on Alibaba valued at $28.35 million as of June 30, 2025. The estimated average strike price on these contracts was $147.10, with BABA shares closing that quarter just above this level.
BABA is now trading at its highest level since November 2021, signaling renewed investor optimism despite geopolitical headwinds.
At today’s Alibaba price of $153.87 (Sept. 12, 2025), Burry’s 250,000 call contracts are in-the-money by $6.77 per share, leaving Scion Asset Management sitting on an unrealized profit of roughly $169 million on paper.
During Q2 2025, Alibaba’s stock fluctuated widely as U.S.–China trade tensions and tariff speculation drove volatility. On Tuesday, April 1, 2025, BABA traded at $132.20, underscoring how far shares have rebounded into the current quarter.
The 250,000 call contracts Scion holds translate into exposure to 25 million shares, giving the position a notional value exceeding $3.8 billion at current prices. While the true capital at risk in premiums is far lower, the position highlights how aggressively Burry has re-levered into Alibaba after previously exiting the stock.
Scion liquidated its 200,000 BABA put contracts
Earlier in 2025, Scion completely liquidated its 200,000 BABA put contracts, essentially removing its bearish exposure. That decision coincided with renewed trade policy uncertainty during the Trump administration’s tariff threats.
The latest filing shows Burry pivoting back toward bullish exposure in Chinese technology and discretionary names, also initiating positions in JD.com with one million call options worth $32.6 million alongside the Alibaba stake.
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