GDXJ Bulls Swarm as Options Hit 20-Day Extreme

Options traders are piling into calls on GDXJ at the most bullish rate in three weeks. The put-call ratio has collapsed to 0.68 — 2.4 standard deviations below its 20-day mean. That's the lowest PCR reading in 20 days, and it arrives as the junior gold miners ETF surges 4.3% in a single session.

Calls Dominate as Gold Rally Takes Hold

The 20-day average PCR for GDXJ sits at 0.88. Monday's reading of 0.68 is a sharp break from that baseline. It sits just above the 52-week low of 0.66, meaning options positioning is at its most call-heavy in nearly a year.

The backdrop is straightforward. Gold has pushed higher. Junior miners carry significant operational leverage to the gold price. When bullion runs, GDXJ tends to amplify the move — and traders appear to be positioning for more.

The ETF is up 6.4% over the past week.

Short Sellers Retreat

Short interest tells the same directional story. SI stands at 8.2% of free float — a meaningful level — but it has dropped 27.8% over the past month. The trend is clear: shorts have been covering steadily as the ETF climbs.

Over the past month, shares short fell from roughly 9.7 million to 6.9 million. That's a significant reduction in bearish positioning.

Borrow Market Loosens Sharply

The borrow market adds an interesting wrinkle. Availability — the share of borrowable stock still available to lend — surged 180% over the past week to 82%.

That's a dramatic reversal. As recently as late August, availability sat below 25% for weeks, at times falling as low as 2.3% as lending pools tightened to near-maximum. The lending squeeze has now eased considerably. More shares are available to borrow than at any point in recent months.

Cost to borrow ticked up 56% week-on-week to 0.45%, but remains low in absolute terms. The rise in CTB alongside a surge in availability is likely a data artefact of the rapid pool-size change rather than a sign of renewed borrow pressure.

What to Watch

Three signals — bullish options positioning, shrinking short interest, and a loosening borrow market — all point in the same direction. The ORTEX short score sits at 62.9, roughly stable over the past two weeks, suggesting the overall short pressure profile hasn't changed dramatically despite the covering. Watch whether the PCR holds below 0.75 as a gauge of whether call demand remains elevated into the gold rally's next leg.

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Data summary

• PCR: 0.68 (–2.4 SD below 20-day mean of 0.88; 52-week low: 0.66)
• Price: +4.3% on the day, +6.4% on the week
• SI % of free float: 8.2% (–27.8% over 30 days)
• Availability: 82% (+180% week-on-week; 52-week low: 2.3%)
• Cost to borrow: 0.45% (+56% week-on-week)
• ORTEX short score: 62.9