The options market just sent its most bullish signal on record for Restaurant Brands International. Meanwhile, short sellers are exiting at the fastest pace since the stock's May short-building campaign began. The two moves are converging — even as the stock keeps sliding.
The put/call ratio collapsed to 0.1457 on June 8. That is the lowest reading on record. The 20-day average sits at 0.35. The z-score hit -4.0 — an extreme rarely seen in any stock. For context, the 52-week high on this ratio was 1.23. Calls are now outnumbering puts by nearly seven to one. Options traders are not hedging. They are positioning for upside.
Short interest has dropped 30% over the past week to 3.8% of the free float. That is the lowest level since early May — before the pre-earnings accumulation campaign that pushed SI toward 5.7%. Shares short fell from roughly 18 million in late May to 12.5 million today. The covering has been relentless across every session since the June 3 earnings print. The stock fell on results, and the shorts still left.
This continues the trend flagged in the June 3 trader note. The unwind was already underway then at 4.2% of float. It has accelerated since.
The borrow side offers no drama. Availability stands at 899% — nearly nine shares available for every one currently shorted. Cost to borrow ticked up 59% over the week to 0.595%. That sounds sharp, but the absolute level is trivial. There is no squeeze pressure here. Shorts are exiting by choice, not by force.
Analysts broadly support the stock. Guggenheim raised its target to $85 on May 26. Barclays sits at $92. The consensus is Buy, with a mean target of $85.72 against a current price of $71.50. That implies roughly 20% upside on analyst estimates alone.
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