Michael Burry Sells Half His NVDA Call ‘Hedge’ Within 24 Hours — Why He May Dump The Rest

• Michael Burry said he remains long-term bearish on Nvidia and may sell the remaining half of his NVDA calls.
• Burry acknowledged there is “little standing in the way of further stock appreciation” for NVDA.
• On Build-A-Bear, Burry said he’s waiting for the 10-Q before deciding whether to add to his position.

Michael Burry sold half of his Nvidia (NVDA) call position less than 24 hours after establishing it as a hedge, saying the calls had done their job. Burry said he remains long-term bearish on Nvidia and may sell the remaining half.

He also called out Build-A-Bear Workshop (BBW), saying the company “watered down the brand” by chasing Squishmallows with pre-made stuffed bears.

At the time of writing on Thursday, NVDA stock was trading 0.61% lower in after-hours trading after ending the regular session nearly 9% higher. BBW stock, meanwhile, ended the regular session more than 27% lower and was down another 0.67% in after-hours trading.

Burry Cuts NVDA Call ‘Hedge’

“I sold half my NVDA call position,” Burry said in a post on Substack. He said the position was established less than 24 hours earlier “as a hedge” and that the calls “did their job, up 50-60%.”

Burry said he remains “long-term bearish” on Nvidia and expects he may sell the remaining half of the NVDA calls. “The thought there is that I have no good reason to keep them,” he said.

Burry acknowledged that there is “little standing in the way of further stock appreciation.”

Burry said the report does not damage his long-term thesis and that specific developments further it. “However, no head shots, and the bullish narrative can continue for a fraction of an eon,” he said.

Burry Highlights Build-A-Bear’s ‘Biggest Misses’

Burry also turned his attention to Build-A-Bear Workshop, saying the company and stock were “having a day” following its earnings release and conference call.

“The biggest misses for me are the commercial revenue guide down to flat, from +20% previously, as well as the Wal-Mart non-renewal, international franchising down 33% while partner operators declined,” Burry said.

Following its results, Build-A-Bear said on an earnings call that it was unable to renew a multimillion-dollar partnership with Walmart.

Why Burry Says Build-A-Bear Lost Its Way

Burry said Build-A-Bear is “literally built around building a bear accompanied by elaborate ceremony that creates a memorable experience.” However, he said the company has been selling pre-made stuffed bears “almost exactly like a zillion others worldwide” to compete with the popular Squishmallows.

“The 10-Q has not been filed yet,” Burry said, adding that he is awaiting the filing before deciding whether to add to his position. He said he continues to hold the position he took “not long ago.” He expects the filing today or tomorrow and said he will hold his full position until then.

NVDA, BBW Stocks: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for both NVDA and BBW was ‘extremely bullish’ at the time of writing.

Year-to-date, NVDA stock is up more than 21%, while BBW shares have lost over 54%. 

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