The semiconductor ETF's lending market has deteriorated sharply since the June 26 convergence report. SOXQ is now down 8% on the week — yet the short position built during that rally has not unwound.
The June 26 note flagged SI at 12.94% of float and availability at 48.5%. Those readings are now the baseline, not the peak. The ORTEX short score jumped to 58.5 on June 25, up from 51.6–53.5 for the preceding week. That is the largest single-day move in the score over the 10-day history shown.
The price has moved sharply against the shorts since the convergence fired. SOXQ fell 5.6% on June 26 alone. The one-week return is now -8.1%. That covers much of the 2.3% one-month gain that had been cited as the backdrop for rising short demand.
Availability sits at 48.5% — in the tight range, meaning roughly one share remains available for every two already lent out. This has barely moved from the June 26 reading. The 52-week low stands at 9.8%, so the pool is not yet fully depleted. But the direction over the past three weeks has been unambiguous: availability was above 400% as recently as June 8.
Cost to borrow is 2.45%, up 74% week-on-week. As recently as mid-May it was below 1.0%. Shorts are paying materially more to maintain existing positions.
The put/call ratio stands at 1.03 as of June 26. The 20-day mean is 1.23. That is 1.4 standard deviations below average — a continued call-skewed reading that stands in contrast to the elevated short positioning. This divergence was flagged in both prior notes and has not resolved.
Through most of May and early June, PCR was running above 1.30. The shift below 1.10 coincided almost exactly with the step-change in short interest that began around June 9. Two distinct camps appear to have taken opposing views at the same time.
The key question is whether the recent price drop triggers short covering or further position-building. Availability at 48.5% with a cost to borrow still rising suggests the borrow market has not yet found equilibrium. If availability drops below 40% — a level not seen since the 52-week low episode — borrow costs will likely accelerate further.
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