Every share available to borrow in ALOY is already lent out. Now options traders are piling on.
Availability for REalloys Inc. has collapsed to just 0.026% — effectively zero. Short interest has climbed 12.3% in a single week to 10.7 million shares. And on August 13, the put-call ratio jumped to 1.02, nearly 4 standard deviations above the 20-day mean of 0.59. These signals don't usually converge on a stock that's up 21% in a week.
Availability has been near zero for most of August. It briefly touched 9.8% on August 10 before snapping back down to 0.026% by August 12 — the lowest level in 52 weeks.
Cost to borrow peaked at 62.8% on August 11. It has since eased to 46.2%. That's still more than triple its late-July level of around 12.5%. The cost surge reflects a simple supply-demand problem: short sellers want more exposure, but the lending pool is exhausted.
The ORTEX short score stands at 83.0 — up from 77.2 two weeks ago. It has moved in one direction every day since August 3.
For most of July, the put-call ratio sat in a tight band around 0.59. It barely moved. Then on August 13 it jumped to 1.02 — the highest reading since July 20. The z-score of 3.9 puts this firmly in statistical outlier territory.
That shift matters because it happened on the same day the stock closed at $12.95, up 21% on the week. Protective hedging at these levels suggests at least some market participants are skeptical the move holds.
REalloys is building a rare earth magnet supply chain targeting US defense and nuclear markets. Needham maintains a Buy rating with a $16 target — trimmed from $19 in July. Clear Street initiated at Buy with a $35 target back in April.
The bull case rests on government backing and vertically integrated supply. The bear case is execution risk. Phase 1 production has already slipped its timeline. The company remains pre-revenue at scale.
With earnings due August 19, the setup is unusually loaded. The last four earnings events produced moves of +21.9%, +8.3%, -5.0%, and -8.6% respectively. The lending market gives short sellers almost no room to add further positions ahead of that date.
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