Two days after availability hit zero, KORU has not recovered a single share of lending capacity. Cost to borrow has continued rising. The squeeze on the borrow market is holding at maximum pressure.
The previous note published on August 1 described availability dropping to 0% — the lending pool fully exhausted. That has not changed. As of July 31, availability remains at exactly 0%. Every share in the lending pool is lent out. The last time KORU traded above 0% availability was July 29, when just 9.2% remained. The move to zero was swift and has proven sticky.
This is the tightest the borrow market has been since early July, when KORU held at 0% for five consecutive sessions before a brief loosening window opened and then slammed shut again.
With no new supply entering the lending market, cost to borrow has continued to drift higher. It now stands at 14.51% — up 56.6% on the week and up 63% over the past month. The one-month trajectory tells the story clearly: KORU cost 8.9% to borrow at the start of July. It now costs 63% more than that.
The cost history shows no plateau. Each day this week has printed a higher rate than the last. When availability is pinned at zero, there is no mechanism to relieve upward pressure on the cost.
Short interest reached 1,637% of free float mid-week before pulling back slightly to 1,591% as of July 31. The one-week change is still +99%. The one-month change is +2,166%.
These figures reflect the mechanics of a 3X leveraged ETF — share creation and redemption activity can push estimated short positions far beyond notional float levels. The absolute percentage is less meaningful than the direction and velocity. Both remain extreme. Bears roughly doubled gross exposure over the past five trading days, and that positioning has held.
The ORTEX short score sits at 72.8, its highest level in the tracked window. It has risen steadily from around 70 in mid-July.
Put/call ratio has fallen to 0.73 — below the 20-day average of 1.02 and roughly 0.87 standard deviations toward the bullish side. A month ago the PCR was running above 1.8. Options traders have shifted toward calls even as the lending market signals maximum bearish conviction.
The ETF itself is down 16% on the week and 62% on the month. The divergence between options positioning and lending market stress is the sharpest it has been in the tracked window.
See the live data behind this article on ORTEX.
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