TRFK, the Pacer Data and Digital Revolution ETF, is riding a sharp rally while its options market has swung to one of its most bullish readings of the past year.
The price story is the clearest starting point. TRFK gained 13% on the week to close at $96.69, adding 6.2% on Tuesday alone. That kind of momentum in a thematic ETF tracking AI infrastructure and cloud computing names reflects a broad re-rating in the digital revolution space — the same segment that was seeing profit-taking just a month ago.
Options positioning has shifted dramatically in line with that move. Call demand has overwhelmed puts to a degree well outside recent norms. The put/call ratio dropped to 0.14, sitting 1.5 standard deviations below its 20-day average of 0.29. To put that in context, the ratio was running above 0.40 through most of June and into early July — options traders have rapidly shed their hedges and leaned toward upside exposure as the rally took hold. The 52-week high for the PCR was 1.50, making the current reading close to the opposite extreme.
Lending market conditions are not adding pressure to that bullish tilt. Borrow availability has loosened considerably — 301% availability means roughly three shares are available to borrow for every one currently lent out, up sharply from 103% just a week ago on July 28. Cost to borrow has also eased, falling to 4.8% from above 6% in late June and early July, and down about 22% on the week. The ORTEX short score of 43.6 reflects a broadly neutral stance from short sellers, not an aggressive bear case. Short interest in absolute terms is modest and has pulled back roughly 64% over the past month from a spike in late June — whatever bearish positioning drove that earlier burst has unwound significantly.
The valuation data is stale and the ETF has no upcoming earnings trigger by definition, so the near-term setup is driven almost entirely by the momentum in underlying holdings and the options positioning shift. With the PCR near its 52-week floor and availability loose, the borrow market is not presenting any friction for either direction — what to watch is whether the call-heavy options posture holds as the ETF approaches its one-month flat line just above current levels, or whether profit-taking returns as it did in early July.
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