Earnings season kicked off on July 7, pulling fresh options attention across several key names. With the SPY tracking the broader market, Fed Governor Waller's comments on monetary policy communication added a macro overlay to options positioning today.
Lemonade surged sharply on Monday. The insurer carries 15% short interest as a percentage of free float. That combination — a hard squeeze setup — typically draws heavy call activity. Availability sits at 403% of short interest, suggesting bears aren't yet capitulating.
IBM jumped after BofA flagged strong Q2 signals and a potential 2026 guidance hike. Short interest is just 3.5% of free float. Options traders leaning bullish here face relatively easy borrow conditions, with availability over 1,584%.
The chip sector offered contrasting reads. AMD and Micron were both highlighted as potential AI buildout winners. Both stocks have low short interest under 4% of free float. That leaves limited squeeze fuel, but cheap calls remain attractive.
Delta Air Lines reports earnings this week. With SI at 3.5% of free float and availability above 1,000%, the options skew likely favors event-driven plays rather than directional short pressure.
Natera gained a target raise to $300 from Evercore. Short interest is low at just 3.1% of free float. High availability of 5,259% confirms shorts are scarce. That setup typically tilts options sentiment firmly to the bullish side heading into any catalyst.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
