Why this matters: Simon Property Group is flashing a rare three-way convergence. Options traders are loading up on hedges. Borrow costs are climbing. Short interest is building. All three moved in the same direction within 48 hours.
The put-call ratio hit 1.82 on June 9. That is 3.69 standard deviations above the 20-day mean of 1.56. The 52-week high sits at 1.85, so SPG is brushing against its most defensive options positioning of the past year.
This is not a gradual drift. The PCR was 1.51 on June 1. It jumped to 1.82 in a single session. Options traders are paying up for downside protection at a rate that stands out even against SPG's historically elevated PCR baseline.
The lending market is corroborating the options signal. Cost to borrow rose 75% in one week to reach its highest level since May 1. Short interest climbed 10.8% over the same period, now sitting at 2.86% of free float — up 14% over the past month.
That said, availability remains very loose. With availability at 4,913%, there are roughly 49 shares available to borrow for every share already shorted. The borrow pool is not stressed. The cost-to-borrow spike reflects increased demand for borrows, not a supply crunch.
The ORTEX short score has risen to 39.4, up from 37.3 a week ago. The direction is consistent — but the absolute level remains moderate.
Wall Street is not sounding the same alarm. JP Morgan raised its price target to $217 on June 1. Barclays, Scotiabank, Citi, UBS, and Evercore ISI all lifted targets in May. The consensus mean target sits at $214.55. SPG closed at $211.89 on June 9 — roughly in line with where analysts think fair value lies.
Ratings, notably, have not moved. Every recent action was a target raise with a held neutral rating. Bulls point to strong occupancy, international diversification via Klépierre, and consistent cash generation. Bears flag structural mall exposure and joint-venture pressures.
The stock is up 4.1% over the past week and 4.8% over the past month — positive momentum that makes the options hedging activity more striking.
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