BCH Shorts Retreat as Borrow Costs Hit June Lows

Short sellers are stepping back from BCH at pace. Borrow costs halved in a week. Availability has opened up sharply. And options positioning has shifted — all as earnings loom on July 31.

Shorts Exit in Bulk

Short interest in Banco de Chile fell 14.8% in a single day on July 24. That brought the weekly decline to 11% and the monthly drop to 28%. From a late-June peak above 1 million shares short, positions now stand at roughly 750,000.

The borrow market confirms the retreat. Cost to borrow collapsed 52% week-over-week to 0.90%. That's the lowest level since mid-June. Availability has swung from tight to loose — sitting at 148%, up sharply from a week ago when it stood well below 100%.

In plain terms: more shares are now available to lend than are currently being borrowed. The lending market has fully opened back up.

Options Shift Worth Watching

The put-call ratio hit 0.1238 on July 24 — the highest in 20 days. That sounds elevated, but context matters. The 20-day mean PCR is just 0.062. The z-score is 1.63, a modest standard deviation move. BCH options remain overwhelmingly call-dominated. This is a relative shift, not a bearish signal in isolation.

The stock itself is up 3.9% over the past month and 1.4% on the week, closing at $40.72 on July 24.

Earnings Due Thursday

BCH reports on July 31. That's four days away. The short score has jumped to 47.6 from 39.2 just one week ago — a material move in a short window. Factor scores paint a mixed picture. EPS surprise sits at the 95th percentile. The 12-month forward EPS growth rank is at the 100th percentile. But EPS momentum over 30 days is only in the 42nd percentile.

UBS lowered its price target to $39 from $48 in May, while maintaining a Neutral rating. The stock trades above that target today at $40.72. BlackRock added roughly 10 million shares in the latest reported period. Vanguard added approximately 6.4 million shares.

Data Summary

• Short interest: 750,388 shares (July 24); down 14.8% day-on-day, 28% month-on-month
• Cost to borrow: 0.90% — down 52% week-over-week, lowest since mid-June
• Availability: 148% — lending market wide open
• Put-call ratio: 0.1238, z-score 1.63 vs 20-day mean of 0.062
• Price: $40.72, +3.9% past month
• Short score: 47.6 (July 23), up from 39.2 one week prior
• Next earnings: July 31