UFO Short Sellers Retreat as Options Turn Bullish

The Procure Space ETF UFO has seen a dramatic reversal in short positioning over the past month. Short interest has collapsed 71% since late May. Options traders are now the most bullish they have been in weeks.

Short Interest Unwinds Fast

SI hit a peak of roughly 10.9% of free float on June 22. It has since fallen to 5.0% of float as of June 24 — a 56% drop in a single week.

The unwinding has been sharp by any measure. Shares short stood at approximately 955,000 on May 28. By June 24 they had fallen to around 177,000. That is an 81% reduction in under four weeks.

Cost to borrow moved with the short interest. CTB briefly spiked to 3.54% as the borrow market tightened last week. It has since retreated to 1.37%.

Borrow Market Loosens Sharply

Availability tells the same story. On June 17, availability stood at just 30.6% — fewer than one share available for every three already on loan. That is a tight market.

By June 24, availability had recovered to 152%. The borrow market has loosened considerably. The 52-week low was 7.6%, recorded during the peak pressure window.

The rapid normalization suggests the short-covering episode may be largely complete. There is no longer significant stress in the lending pool.

Options Positioning Tilts Bullish

The put-call ratio on June 25 was 0.49. That is 2.25 standard deviations above the 20-day mean of 0.38.

A rising PCR on its own can read as bearish — more puts relative to calls. But in context here, the 20-day baseline was historically low, anchored by a period in May when the PCR sat below 0.15. The current reading reflects a normalization, not a shift toward outright hedging.

The 52-week PCR high is 2.99. At 0.49, options positioning remains firmly in call-dominant territory. Traders are not rushing to protect downside at current levels.

What the Data Shows

The ORTEX short score has drifted lower this week, to 44.2 from 49.3 on June 19. That decline reflects the easing of borrow pressure and falling short interest.

UFO is down 25% over the past month. The price has fallen even as shorts covered. That combination — price weakness alongside short covering — is worth watching.

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• SI % of Free Float: 5.0% (as of June 24), down from ~10.9% on June 22
• SI change, 1 month: -70.5%
• Cost to borrow: 1.37%, down from a weekly peak of 3.54%
• Availability: 152.4%, up from a 52-week low of 7.6%
• Put-call ratio: 0.49 (z-score +2.25 vs 20-day mean)
• Short score: 44.2, easing from 49.3 one week ago
• Price: $46.48, -25% over 30 days