LVWR just became one of the hardest stocks to borrow in the market. The lending pool is completely exhausted. Short sellers are now paying 588% annually to maintain positions.
Availability has collapsed to 0%. Every share in LVWR's lending pool is currently lent out. That's the tightest the borrow market has been this year — and it's been near zero for most of July.
The cost to borrow tells the same story, only louder. CTB stood at roughly 36% at the end of June. It hit 80% in mid-July. Then earnings dropped on July 23. The stock jumped 61% in a single session. CTB has since exploded to 588% — up 633% in one week and 1,523% over the past month.
That is not a rounding error. It costs short sellers nearly six times the value of their position per year just to hold the borrow.
Short interest climbed 50% in a single week to 1.94% of free float. At roughly 3.96 million shares short, the absolute level is modest. But the dynamics are extreme.
The ORTEX short score sits at , placing LVWR at the very top of its lending-stress rankings. The stock is up 185% over the past week alone. Sellers who added exposure before earnings are now caught between a surging price and a near-impossible borrow market.
Days to cover stands at 9.7 per the most recent FINRA settlement data — meaning at average volume it would take nearly two weeks to unwind current short positions.
The put-call ratio hit 0.33 on July 29. That is 2.6 standard deviations above the 20-day mean of 0.09 — and close to the 52-week high of 0.36 recorded the day before. Options activity has shifted sharply since the earnings print. The PCR was flat below 0.06 for most of the prior month.
The next earnings event is scheduled for August 6. Options positioning heading into that date will be worth watching closely.
See the live data behind this article on ORTEX.
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