Options traders are piling into calls on OTEX at the most aggressive pace in a year. That shift coincides with a sharp unwinding of short positions — creating a rare alignment of signals around Open Text Corporation.
The put/call ratio collapsed to 0.39 on June 2. That is 2.54 standard deviations below the 20-day mean of 0.70 — the most bullish options reading in the past 52 weeks. For context, the PCR sat above 0.85 through most of April. The swing to call-heavy positioning happened in a single session.
Short interest dropped 31.6% in one week to 4.36% of free float. That is a meaningful unwind. Over the past month, SI has fallen 21.3%. Bears who built positions when SI was running above 6% of float are now covering at scale.
The ORTEX short score has tracked this shift closely. It stood at 57.9 on May 26. By June 1 it had fallen to 48.8 — moving from bearish territory toward neutral in under a week.
Cost to borrow jumped 218% in one week to 1.64%. That is the sharpest weekly move in months. It tells a clear story: as short sellers rushed to cover, demand for borrows briefly spiked even as the aggregate short position shrank.
Availability currently sits at 230% — well within the normal range, meaning the lending pool is not stressed. The CTB spike reflects short-covering friction, not a structural squeeze in supply.
Several large holders added shares in Q1 2026. Fidelity International added 5.03 million shares as of March 31. 1832 Asset Management added 3.65 million. Brandes Investment Partners added 3.03 million. These are material position builds by long-only institutions, providing a counterweight to the short-side activity.
OTEX's closest correlated peers have posted sharp gains. BILL is up 9.3% on the week. KXS is up 16.4%. MANH gained 16.2%. OTEX itself rose 5.9% on the week despite a -2.3% session on June 2 — suggesting the stock is catching some of the broader software bid.
What to watch: Next earnings are scheduled for August 6. The PCR and short score will be key gauges of whether this week's bullish convergence holds or fades before then.
See the live data behind this article on ORTEX.
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