Options traders have spent the past week adding protective cover on Agnico Eagle Mines. The put/call ratio hit 0.73 on Aug 24 — the highest in three weeks — and sits 1.4 standard deviations above its 20-day mean. Meanwhile, short interest jumped 29% in a single day. Both moves come after a 54% monthly surge to $224.11.
The signals are modest in absolute terms. But the direction is clear: as AEM's rally extends, more market participants are hedging.
The PCR stood at 0.63 at the start of August. It has drifted to 0.70 by Aug 25. The 52-week high is 0.82, so this is not extreme. But the pace of the move — rising alongside the stock, not after a selloff — is the notable feature. Traders are buying protection into strength, not panic.
Short interest reached 1.19% of free float on Aug 25, up from 0.91% a week ago. The 30-day change is also roughly 30%. In the previous note from Aug 19, SI was under 1% of float and described as negligible drift. That threshold has now been crossed — this is a meaningful step up, though the absolute level remains low for a stock that has moved 54% in a month.
Days to cover stands at 1.7, per the most recent FINRA data. That limits any mechanical squeeze dynamic.
Despite the short interest increase and a rising cost to borrow, the lending market is nowhere near tight. Availability sits at 5,003% — meaning roughly 50 shares are available in the lending pool for every one already borrowed. The cost to borrow is 0.86% annualised, up about 20% over the past week but still in low-cost territory. Shorting AEM remains cheap and easy.
The availability figure has tightened sharply over the past week — it was above 9,000% as recently as Aug 14 — but 5,000% is still a loose borrow market by any standard.
The consensus price target sits at $214.97, as of early August. AEM is now trading at $224.11 — above where analysts collectively thought it should be. JP Morgan's most recent action (Aug 3) raised its target to $179, a Neutral rating. Scotiabank's target is $260. B of A has a Buy with a $240 target. The spread is wide, and the stock has run through the midpoint of the range.
Next earnings are due Oct 28.
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