SCHW options traders shifted sharply defensive on Tuesday. The put-call ratio jumped to 1.39 — the highest since late April — and sits 3.1 standard deviations above its 20-day mean of 1.14. The stock fell 1.3% on the day and is down 4.3% over the past month.
That PCR spike coincides with a quiet but persistent build in short positions. Together, they tell a coherent story about near-term sentiment on the brokerage giant.
Short interest rose 21.6% over the past week to 1.09% of free float. That is the steepest weekly climb in a month. Over 30 days, shares short are up 46.5%.
To be clear: at 1.09% of float, this is not a heavily shorted name. The absolute level is low. But the rate of change is what's catching attention. Cost to borrow has climbed 39% week-on-week to 0.41% — still cheap, but the direction matters.
Availability remains extremely loose at 9,999%. There is no stress in the lending market. Bears are adding positions, not fighting over scarce borrows.
The options hedging stands in contrast to what analysts think. Four firms — Raymond James, TD Cowen, Barclays, and JP Morgan — all raised price targets in May. The consensus target sits at $115.85. With the stock at $87.61, that implies 32% upside.
Barclays lifted its target to $127. Raymond James pushed to $137. Bulls point to daily average trades running 30% above last year, pledged asset lending up 49% year-to-date, and client assets reaching $11.9 trillion.
Bears flag net interest income pressure, net new asset flows below 5%, and lingering TD Ameritrade integration drag.
Charles Schwab — Founder and Co-Chairman — sold shares on at least five separate occasions in May. Total sales across those transactions exceeded $22 million. In the same window, CEO Rick Wurster bought roughly $1.85 million worth at $84.23 per share on May 28.
The net 90-day insider position is a net sell of roughly $63.7 million in value. Founder selling at scale, while the CEO buys the dip: two insiders, two different reads.
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