META Call Dominance Extends to New 2026 Lows Post-Earnings

Meta Platforms delivered a positive earnings reaction on May 27. The PCR just made a new year-to-date low. The two facts are not unrelated.

The put/call ratio closed Thursday at 0.4528 — the lowest reading of 2026 and a fresh extension below the prior 52-week low of 0.4588 flagged in the last note. It sits 2.4 standard deviations below the 20-day mean of 0.484. The drift has been steady: from 0.50 in early May, through 0.47 after earnings, and now to 0.45. Traders are not hedging — they are pressing calls into the next event.

That next event is July 22 earnings. The last two earnings have produced moves of +3.7% and -8.9% respectively. The options market is currently positioned as if the upside scenario is the base case.

Short Interest Ticks Higher, Borrow Stays Cheap

Short interest rose to 1.47% of free float as of May 28 — up 10.2% over the week and 21.3% over the month. In absolute terms, roughly 32 million shares are short. That is not a threatening level, but the directional trend is worth watching. Some traders are leaning against the post-earnings bounce.

Cost to borrow sits at 0.42%, up roughly 49% over the past month from levels near 0.28%. The borrow market remains exceptionally loose — availability is deep with ample supply. The CTB move reflects incremental demand for borrows, not any squeeze dynamic.