Soleno Therapeutics is heading into a May 22 earnings event with a striking contradiction. Insiders unloaded over $23M of stock on Monday. Yet options traders are the most bullish they've been in months.
The insider selling on May 18 was sweeping. CEO Anish Bhatnagar sold shares across five transactions totalling roughly $26.1M. CFO Jennifer Fulk sold 67,660 shares worth $3.6M. SVP Patricia Hirano sold three separate tranches for a combined $1.7M. A director also sold $929K.
Every trade was executed at $53 — exactly where multiple analysts cut their price targets in early April. Wells Fargo, TD Cowen, HC Wainwright, Wolfe Research, and Cantor Fitzgerald all downgraded the stock in early April. Most landed at $53 as their new target.
The 90-day net insider sell figure now stands at $95.7M across 1.8M net shares sold.
Short interest climbed 20% in a single week to 11.22% of free float. That's roughly 6 million shares short as of May 18.
Cost to borrow jumped 156% over the same period — from 0.52% to 1.32% APR. That's still a low absolute rate, but the pace of the move is notable.
Share availability has tightened sharply too. A week ago, availability stood at over 1,150% — meaning more than eleven shares were available to borrow for every one already borrowed. It has since collapsed to 464%. Still loose by absolute standards, but the direction is unmistakable. Availability dropped 71% in one week.
The put/call ratio hit 0.78 on May 18. The 20-day mean is 0.97. That's a 2.6 standard deviation move to the downside — the most bullish options positioning in roughly a month.
The 52-week PCR range runs from 0.31 to 1.83. At 0.78, the current reading sits firmly in the lower half. Call buying is dominating.
This is the sharpest disconnect in the current data set. Short sellers are building positions and paying more to borrow. Options traders are simultaneously loading up on calls.
Context matters here. Soleno agreed to be acquired at a 34% premium to current levels. The deal is fully funded with no financing contingencies. VYKAT XR — its Prader-Willi syndrome treatment — is already FDA-approved, with a European decision pending.
Insider selling into an acquisition agreement is not unusual. Executives liquidating before a deal closes is a common pattern, particularly when shares have already run hard. Wellington Management added over 1.1M shares in Q1. Janus Henderson added 1.06M. Khrom Capital opened a fresh 1.5M-share position.
Earnings land May 22. The options market is betting on a positive reaction. Short sellers disagree — and they're paying more for that view every day. The availability trend bears watching: if it falls below 200%, the borrow market starts to look genuinely tight for new shorts entering the trade.
Key data (as of May 18, 2026)
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
