Michael Burry Is Betting on Gambling Stocks. But He Is Really Betting on Regulation

Options trading and stock market news: Michael Burry built positions in DraftKings and Flutter with about 60% in Flutter. Mike Butler and Jermal Chandler break down the thesis: if prediction markets like Kalshi are forced to follow the same rules as licensed sportsbooks, DraftKings and FanDuel regain a major competitive advantage. The World Cup is expected to drive nearly $3 billion in US betting handle, about three times the 2022 total. Both names show clear call skew to the upside. DraftKings is trading near annual lows at $26 with 49,000 open interest on the August 30 calls. Mike likes selling the 25 put to buy the 30 call and collecting 50 cents. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Burry is not just buying gambling stocks 00:24 If prediction markets get regulated, licensed operators win 00:43 The World Cup: $3 billion in betting handle 00:49 The math check: buying stocks or buying a regulatory clock? 01:10 Call skew in both Flutter and DraftKings 01:57 DraftKings has twice as much premium on the upside 02:30 Jermal: he is betting on betting 02:48 DraftKings at annual lows, five points off the bottom 03:15 August 30 calls with 49,000 open interest 03:32 The trade: sell 25 put, buy 30 call, collect 50 cents 04:09 Flutter: illiquid, no weeklies, $2 wide bid/ask 05:05 Prediction markets will get regulated, it is a matter of time #tastylive #michaelburry #draftkings #predictionmarkets #worldcup #optionstrading #mathcheck #regulation #sportsbetting #tastytrade tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.