RGC Borrow Costs Hold Above 300% as Short Positions Rebuild

Short sellers have rebuilt positions in RGC steadily over the past month. Estimated shares short stood at 770,946 on October 19, up 53% from a month ago, after a brief retreat to 576,000 shares in mid-October proved short-lived.

Shorts Rebuilding Into a Rising Stock

The October low was fleeting. Short interest hit 826,405 shares on October 15 before settling back to 771,000 by October 19. The one-week change is still up 19%. That rebuilding has come while the stock gained 28% over the same week and 80% over the past month. Each new short position entered at these levels carries a significantly higher cost basis than positions opened in September.

The Borrow Market Remains Deeply Constrained

Availability stands at 31.1% as of October 19, meaning roughly one share is available to borrow for every three already lent out. That is tighter than normal but has actually eased from the low of 17.3% recorded on October 8. The cost of maintaining a position has not eased: cost to borrow was 313.0% on October 19, inside the 300% to 355% range that has held for more than six consecutive weeks. That sustained level makes RGC one of the most expensive shorts on the exchange by any measure. The 52-week availability low was 0%, so the current reading sits well above the extremes seen earlier this year, but the borrow remains far from accessible.

Options Picture Shifts Toward Calls

The put-call ratio fell to 1.46 on October 20, down from a 20-day mean of 2.15. That is a z-score of roughly minus 1.5, the most call-heavy options positioning seen in the past month. For most of September and early October, the PCR ran above 2.4. The shift began October 14 and has held. Puts still outnumber calls in absolute terms, but the gap is the narrowest it has been all year apart from a brief dip to a PCR low of 0.82.

What the Data Shows

• Estimated shares short: 770,946 (October 19), up 53% over one month
• Cost to borrow: 313.0%, inside a 300% to 355% band held for six-plus weeks
• Availability: 31.1%, roughly one share free per three already borrowed
• Stock price: $10.45, up 80% over one month and 28% over one week
• Put-call ratio: 1.46, z-score of minus 1.5 against a 20-day mean of 2.15
• Next earnings: October 28