OUNZ Bulls Pile Into Options as Short Sellers Chase Gold Lower

Why this matters: Options traders are making one of the most extreme bullish bets of the year on the OUNZ VanEck Merk Gold ETF — even as short sellers rapidly build opposing positions. The two camps are diverging sharply, and gold's 11.5% slide over the past month is the backdrop forcing the standoff.

Converging Signals

The put-call ratio on OUNZ hit 0.11 on June 24 — a 52-week low and more than two standard deviations below its 20-day mean of 0.18. That means roughly nine call contracts are open for every one put. Options traders are not hedging a declining gold ETF. They are positioning for a rebound.

Short sellers disagree. SI has risen 40.5% in a single week, reaching 1.14% of free float. That is a rapid change of direction — up from levels around 0.8% just seven days ago. The short position is still modest in absolute terms. But the speed of accumulation is notable.

The borrow market is tightening in step. Cost to borrow jumped 71% over the past week to 0.60%. Availability currently sits at 89% — tight relative to the loose conditions of just a few weeks ago, when availability was above 1,500%. The lending pool has tightened dramatically since late May as shorts piled in.

Corroborating Context

The ORTEX short score stands at 46.6, edging up from 43.0 at the start of June. It is not yet at alarming levels for shorts. But the direction is consistent with the borrowing data.

The price tells its own story. OUNZ has fallen 2.99% in a single day, 5.8% over the week, and 11.5% over the past month. Short sellers are leaning into a trend. Options buyers are betting it ends.

The Split Screen

The unusual feature of this convergence is not the short interest itself — 1.14% of float is low by any measure. It is the gulf between what options and short-interest data imply about the path ahead.

Put-call ratios at 52-week lows signal institutional or retail conviction on the call side. Short interest rising 40% in a week signals fresh conviction on the other side. Both camps are moving aggressively and simultaneously.

Borrow availability dropping from over 1,500% in late May to 89% today means the lending environment has shifted meaningfully. Shorts are competing for a share pool that is now far tighter than it was.

Data Summary

• Price: $38.35, down 11.5% over 30 days
• SI % of Free Float: 1.14%, up 40.5% week-on-week
• Cost to Borrow: 0.60%, up 71% week-on-week
• Availability: 89% — tightened sharply from 1,500%+ in late May
• Put-Call Ratio: 0.11 — 52-week low, z-score –2.09
• ORTEX Short Score: 46.6, up from 43.0 on June 12