Options sentiment on HEI.A has reversed sharply since Monday's defensive read. The put/call ratio dropped to 0.81 on May 20 — 2.7 standard deviations below its 20-day mean of 0.97. Calls now dominate heading into Thursday's print.
Two days ago, ORTEX noted that HEI (the common share class) showed an unusually defensive options posture. That picture has changed materially on the Class A side. The PCR has swung from above parity to firmly call-heavy in just days.
The 20-day PCR average sits at 0.97. Tuesday's reading of 0.81 marks the most call-skewed session in recent weeks. At a z-score of -2.66, the move is statistically significant — not just pre-earnings noise.
The 52-week PCR range spans 0.17 to 1.07. At 0.81, the market is not at extremes. But the direction and speed of the shift stand out. Bears were in control as recently as late April, when the PCR ran above 1.07. The reversal is sharp.
Short interest on HEI.A sits at 0.69% of free float — low by any measure. It has fallen roughly 14% over the past week. Bears have been covering, not building.
Cost to borrow has collapsed in parallel. It stood at 0.32% on May 19, down 51% in a week. A month ago it was closer to 0.55%. The lending market for HEI.A is exceptionally loose: availability is at 8,464% — more than 84 times the shares already borrowed. There is no borrow pressure here whatsoever.
Together, the signals point the same direction. Bears are reducing exposure. Shorts are trimming. Options traders are pivoting to calls.
ORTEX's May 19 earnings preview flagged defensive options positioning and rising short interest on HEI. The data has since moved the opposite way on both fronts. Short interest has continued to fall. The options tone has flipped from bearish to bullish.
The ORTEX short score sits at 28.2 and has been drifting lower all month. The analyst recommendation differential ranks in the 98th percentile — among the most bullish analyst setups in the universe.
The stock closed at $223.78 on May 20, up 2.7% on the day and up about 1% over the past month.
HEICO reports Thursday, May 22. Recent earnings history shows the stock has moved sharply in both directions after prints — down 5% and 8% on the two most recent releases. Options traders, at least today, are positioned for a different outcome.
Data summary
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