Options traders are positioning bullishly on WM ahead of late-October earnings. The put/call ratio has fallen to 0.66 — 2.3 standard deviations below its 20-day mean of 0.93. That is the most call-heavy positioning in two weeks, and well off the 52-week high PCR of 1.07 reached just three weeks ago.
The shift is sharp. As recently as early September, the PCR sat above 0.97 on most sessions. It has now dropped more than 30% from those levels in under three weeks. Earnings are due October 27.
The bullish options tone has a fundamental backdrop. Barclays maintains Overweight with a $277 target. UBS holds Buy at $270. Both raised targets after the most recent earnings print. The consensus mean target sits at $259.92. WM currently trades at $207.88 — implying roughly 25% upside to that consensus figure.
Wolfe Research assumed coverage on September 15 at Peer Perform, the sole neutral voice in recent weeks. Every other recent move has been a target raise.
Short interest is a low 1.35% of free float — well below any threshold where bears are a meaningful force. It has fallen 13.5% over the past month. Borrow availability is extremely loose at 9,999% of short interest, with 242 million shares available to lend. There is no meaningful pressure from the short side.
Cost to borrow did jump 73.5% over the past week to 0.43%. That sounds dramatic but remains a very low absolute rate. The move likely reflects minor technical shifts in the lending pool rather than any structural change. Month-on-month, the CTB is still down nearly 9%.
WM's short score sits at 30.7 and has been drifting lower for two weeks — consistent with the fading short interest. The October 27 earnings print is the next catalyst. Recent history shows WM moved -5.5% the day after its most recent report. Options traders appear to be positioning for a different outcome this time.
Data summary
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