FTXL, the First Trust Nasdaq Semiconductor ETF, enters the back half of May with a striking split: options traders are more aggressively bullish than at almost any point in the past year, while the borrow market swung from near-maximum tightness to its loosest reading in over a month — all in a single session.
The most striking signal this week is in options. The put/call ratio collapsed to 0.048 on May 19, more than 2.4 standard deviations below its 20-day average of 0.111. That is near the lowest reading of the past year — the 52-week floor is zero, and the current level is the leanest protective positioning has been since the ETF's strong recovery run began. Just four weeks ago, during the late-April volatility, the PCR was running above 0.37. The shift is sharp and consistent across the past two weeks: put demand has steadily unwound as the ETF has climbed 21.9% over the past month.
The borrow picture is the week's most volatile story. Availability had been extremely tight — pinned below 35% on both May 11 and May 14, indicating barely one share available for every three already borrowed. Then, on May 19, availability leapt to 688%, meaning the lending pool is now comfortably supplied relative to demand. The cost to borrow has edged up 15.8% over the past week to 4.54% APR, and is up 85% versus a month ago — a sign that borrow costs were building through April and into May even before this week's availability swing. Short interest itself has been flat for seven consecutive sessions, locked at 528,516 shares, or 5.2% of the float, after stepping up about 6.6% from 495,748 earlier in May. The flat plateau combined with suddenly loose availability suggests short sellers added their position earlier in the month and have not chased the recent rally.
The ORTEX short score dropped sharply, falling from 59.1 on May 18 to 45.6 on May 19. That drop is notable: the score had traded in a narrow band between 55 and 59.4 for the entire prior ten-day window. A single-day correction of this magnitude typically reflects the easing in availability and the unchanged short interest — the component inputs that drive the score have shifted away from the "stressed borrow" territory that characterised the earlier part of May. At 45.6, the score is now solidly mid-range rather than leaning into short-squeeze territory.
The ETF closed at $229.81 on May 19, down 4.0% on the week despite being up 21.9% over the past month. The week's dip is a consolidation note within a strong broader recovery. A prior generic note from May 9 flagged that FTXL fell 2.1% as chip demand signals softened and sector capex guidance came in weaker — a reminder that the semiconductor cycle narrative remains the key driver underneath this vehicle.
The next inflection to watch is whether short interest stays anchored at the current 528,516-share plateau or resumes climbing as borrow availability has now reopened. The gap between a very bullish options setup and a still-elevated short position — at 5.2% of float — is the tension that defines how the ETF trades into any new sector catalyst.
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