IGPT Options Sentiment Hits Extreme as Borrow Market Normalises

Why this matters: Three data streams are moving simultaneously on IGPT, Invesco's AI and Next Gen Software ETF. Options positioning has swung to a historic extreme. The borrow market — which was dangerously tight last week — has eased sharply. Short interest ticked up but remains trivially small.

Options Tell the Loudest Story

The put/call ratio collapsed to 0.0324 on September 21. That is the lowest reading in nearly a year — the 52-week low sits at 0.0194, and the high at 0.6042. Against a 20-day mean of 0.0796, the current reading is almost four standard deviations below average (z-score: -3.93). That is an extreme. Call positioning now dominates options flow by a wide margin. The ETF is up 5.3% on the day and 10.7% over the past week — the options positioning reflects, and potentially amplifies, that momentum.

The Borrow Squeeze Has Reversed

Six days ago, the previous ORTEX article noted availability had collapsed to 40.8% — the tightest in twelve months. That has changed materially. Availability now stands at 94.8%, up from 19.3% on September 18 — a sharp reversal in a single session. That means roughly 364,877 shares remain available to borrow, nearly five times what was on offer last Thursday.

Cost to borrow is still elevated. At 2.73%, it is up 55.5% over the past week and the highest in the 30-day window. But the directional story has shifted: the lending pool opened up significantly even as the fee stayed high. The two signals are now pointing in different directions, suggesting a technical reset rather than a continuation of last week's tightening.

Short Interest: Still Negligible

SI edged up 8.7% on the day to 0.58% of free float — a bounce from the week-long collapse documented in the September 16 article. At fewer than 63,000 shares short, this remains a rounding error for an ETF with this asset base. The one-month decline of 64.8% confirms the structural unwind is intact. The daily bounce is noise, not signal.

Institutional Holders Adding Exposure

The most recent 13F filings (as of June 30) show several holders adding meaningfully. HighTower Advisors added 239,576 shares — the largest single increase in the top-15. Morgan Stanley added 119,143 shares. Susquehanna International Group initiated a position of 147,342 shares. These are June-quarter figures and may not reflect the recent rally, but the direction is consistent with the broader options positioning.

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• PCR: 0.0324 (z-score: -3.93 vs. 20-day mean of 0.0796)
• Availability: 94.8% (vs. 19.3% last Thursday)
• Cost to borrow: 2.73%, up 55.5% week-on-week
• SI % of float: 0.58%, up 8.7% on day, down 64.8% over one month
• Price: $102.95, up 5.3% on day, up 10.7% on the week