Dr. Reddy's Laboratories arrives at its May 25 earnings release with two positioning camps — one in the options market, one in the lending pool — refusing to give ground to the other.
The borrow market remains the more urgent signal. Availability has eased slightly to 32.5%, recovering a fraction from the 33.5% reading in yesterday's preview but still far below the 62.7% seen just four sessions ago and the 88% level of two weeks prior. Roughly two shares are borrowed for every one still available to lend. Cost to borrow has dipped marginally to 0.61% but remains 8% higher on the week. Short interest itself pulled back about 2% on Thursday to approximately 16.3 million shares, a modest pause in what has been a sustained build — shares short are still up 7.7% over the month. The ORTEX short score holds at 55.2, near the top of its recent range, and days-to-cover from official FINRA data runs at 5.55. The lending market reads as meaningfully tighter than at any point earlier in this earnings-preview cycle, even if Thursday's single-session dip slightly eases the congestion.
Options traders remain unmoved by the borrow pressure. The put/call ratio held at 0.15 on Thursday — well below its 20-day average of 0.39 and near the low end of its 52-week range of 0.009 to 1.83. Call flow continues to dominate by a wide margin. The contrast with the PCR readings above 1.10 recorded in early May is stark: in less than two weeks, the options market shifted from defensive to outright bullish positioning. That swing has now persisted for five consecutive sessions without reverting, giving it more weight than a one-day spike would carry.
The institutional ownership picture adds texture. The top two holders — Kallam Reddy and Gunupati Prasad — together hold more than 26% of shares with no reported change, anchoring the register. BlackRock and Boston Partners have added modestly in the most recent period, while ICICI Prudential trimmed slightly. The base is stable rather than restless. Analyst data on record is too stale to cite meaningfully, and the most recent insider transaction on file dates to mid-2025 — neither provides fresh signal for this print.
The May 25 release will test whether the call-heavy options positioning reflects genuine confidence in the results, or whether the short sellers who have steadily built exposure through the month will find the validation they have been waiting for.
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