Options market participants are building bearish positions across several names this week. Three stocks stand out: RDDT, CHTR, and LI.
Charter Communications carries the heaviest short burden of the trio. Short interest sits at 32.4% of free float. Availability of shares to borrow is just 48% of short interest — a sign bears are fighting for scarce supply. Days to cover stands at 9.4, meaning any positive catalyst could force a rapid unwind.
Li Auto shows the tightest borrow market. Availability is just 5.8% of short interest. ORTEX flagged its borrow market as "nearly maxed out" ahead of Wednesday's earnings print. Cost to borrow has risen to 1.93%. Bears are paying up to maintain positions going into the report.
Reddit carries 17.6% short interest of free float. The stock is down 33% year-to-date. Availability remains generous at 253%, suggesting shorts can still add without constraint.
All three names appear in ORTEX news flagging increased bearish activity in the week that NVDA reports earnings. Nvidia itself heads into results with bears largely on the sidelines. Short score sits at just 29.5. The $5.25 trillion chip giant shows RSI near neutral at 51.
Lockheed Martin is the outlier in the other direction. An analyst upgrade tied to rising defence spending bets puts options sentiment squarely on the bullish side heading into its Q2 earnings call.
This is not financial advice.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
