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IGPT, Invesco's AI and Next Gen Software ETF, has reversed much of the short-side build that dominated last week's note, with short interest falling sharply and the lending market loosening to its most comfortable position in weeks.
The most significant change from the September 30 note is the unwinding of that fivefold short-interest surge. Short interest peaked at around 328,510 shares on September 29 and has since dropped back to 238,686 shares, a decline of roughly 27% over the week, bringing the figure to 2.2% of the free float. That reverses most of the dramatic build documented last week. Availability tells the same story: after tightening to around 90% a week ago, it has now swung back out to 217%, meaning more than two shares are available to borrow for every one currently lent out. The borrow market has moved from cautiously tight to comfortably loose in a matter of days. Cost to borrow has also eased, falling 14% over the week to 3.09%, though it remains roughly 44% above where it was a month ago. Taken together, the short position is deflating and the lending conditions that might have supported a squeeze are no longer present.
Options positioning remains heavily call-skewed, and has been for some time. The put/call ratio is 0.036, below its already-low 20-day average of 0.053, and well beneath the 52-week high of 0.60. The z-score of negative 0.84 suggests positioning is slightly more call-dominated than the recent norm, but the movement is modest. This is not a market hedging defensively into IGPT; the options book is almost entirely calls, as it has been throughout the recent volatility in the short and borrow markets.
The ORTEX short score has drifted lower alongside the short interest retreat. It registered 45.2 on October 6, down from around 51 at the end of September when the short build was at its peak, and below the 50 level that has broadly defined the range for the past fortnight. The combined score at 45.0 points in the same direction: the pressure that characterised the last note has partly dissipated.
On the ownership side, the most notable recent move among top holders is Susquehanna International Group, which initiated a new position of 147,342 shares as of the June 30 filing. HighTower Advisors added 239,576 shares in the same period, making it the largest net buyer among the top holders. Morgan Stanley added 119,143 shares. These are Q2 filings and do not reflect the volatility of the past few weeks, but they show meaningful allocator interest in the fund at lower price levels. IGPT has gained 8.4% over the past month to $103.20, so buyers from late June are sitting on gains.
The ETF slipped 0.5% on October 6 after a 1.7% weekly gain. With the short position unwinding and availability loose, the near-term story shifts from borrow-market dynamics back to the underlying AI and software sector performance, and to whether the call-heavy options book reflects genuine conviction or simply the absence of hedgers.
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Open IGPT 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.
