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Why this matters: Short sellers are covering. The data is clear on that. But the lending market tells a more cautious story — availability remains very tight, and the ETF's options positioning has normalised far faster than the underlying borrow stress.
SOXX short interest fell 10.1% in a single week. Shares short dropped from roughly 13.4 million to 11.8 million. That is a meaningful reduction. At 21.0% of free float, the position is still large — but the direction has shifted decisively.
Three days ago, this report noted the borrow market had been "flashing red for weeks." That remains true. But short sellers are now unwinding at pace.
The previous article flagged availability as low as 4.3% on August 12. That was extreme. The 52-week low. One share available for every 23 already lent out.
Since then, availability has recovered. It stood at 45.8% as of August 27. That sounds like relief. It isn't, quite.
Below 50% is still very tight. For every share already borrowed, less than one share remains available. The lending pool is still stressed — just less so than the August 12 nadir.
Cost to borrow confirms the partial easing. It peaked at 1.55% on August 21. It has since fallen back to 0.75% — down 44% over the week. Cheaper to borrow, more room in the pool. But neither metric is back to where it was in late July, when availability exceeded 150%.
The put-call ratio hit 4.28 on August 25 — a 52-week high, 4.3 standard deviations above the 20-day mean. That was the headline of the last convergence report. It triggered the options pulse.
It lasted one day. By August 27, the PCR had normalised to 1.22. That is actually at the 52-week low. Options traders reversed their bearish positioning almost immediately. The spike looks like a sharp, short-term hedge — not a sustained structural shift.
The ORTEX short score sits at 66.5. It has edged down from 67.3 on August 19. The trend is modest but consistent: bearish pressure is easing.
Availability is the key variable. It recovered from 4.3% to 45.8% in two weeks — but that recovery has stalled around the 25–45% range for most of August. A sustained move back above 100% would signal genuine normalisation. Until then, the borrow market remains a constraint on how quickly shorts can rebuild positions — or how comfortably longs can assume the pressure has fully passed.
Data summary
See the live data behind this article on ORTEX.
Open SOXX on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data and reviewed by the ORTEX team. Content is informational only and does not constitute investment advice.
