Options traders are loading up on puts. Short sellers are adding positions at the fastest weekly pace in months. Yet the borrow market is saying the opposite — availability has loosened, not tightened. That contradiction is the NVS story heading into July 21 earnings.
The PCR hit 2.19 on June 30. That's a two-standard-deviation move above the 20-day mean of 1.99. For context, the 52-week range runs from 0.74 to 2.52. Traders are buying puts — but at current levels, this looks more like hedging ahead of Q2 results than outright bearish conviction. The last earnings print on April 28 moved the stock just -0.87% on the day. Options positioning suggests the market is pricing in more risk than history warrants.
Short shares jumped 38.6% over the past week to roughly 5.0 million. That's a sharp move in absolute terms. One week prior, the reading was 3.6 million. The climb has been sustained across four consecutive data points since June 24.
But the borrow market is relaxed about all of it. Availability sits at 655% — meaning more than six shares remain available to borrow for every one already lent out. That's the loosest reading in the past 30 days. In late May, availability was running at 215–220%. The lending pool has expanded materially even as short interest climbed.
Cost to borrow is 0.85% — up 43% over the past month, but still historically cheap for a large-cap pharma name. There is no borrow squeeze here.
A prior note on June 24 described the lending market as offering "essentially no information." That has changed. Short interest has jumped from ~3.6 million shares to ~5.0 million in the five sessions since. The short score has moved too — sitting at 34.4, up from 25.9 cited in that earlier piece. The direction is new. The magnitude is worth watching.
Morgan Stanley raised its price target to $170 in March, maintaining Overweight. The stock closed at $156.72 on June 30, up 4.4% over the past month.
Watch: whether the short interest build continues into the earnings window, and whether the PCR approaches its 52-week high of 2.52 — which would signal a step-change in hedging demand beyond what current positioning shows.
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