Bears Crash the AI Party

Options markets are sending mixed signals this week. Bears are piling into momentum names while bulls defend key support levels into the June expiry window.

NVDA leads the options activity. Its short interest sits at $59 billion worth of borrowed stock. That is over 288 million shares short as of June 11. Momentum score hit 61.8 out of 100 — the highest in a month. Yet short sellers are not backing down. Options expiries cluster heavily around June 15–18, suggesting a near-term volatility event is expected.

GME tells a more dramatic story. Short interest dropped sharply from 17.4% of free float in mid-May to just 12.8% by June 11. That is a 4.5 percentage point cover in less than four weeks. Bears are exiting fast. Options expiries run through to September, giving bulls time. Covered calls may be unwinding as short sellers capitulate.

GILD shows the densest near-term options calendar. It has 11 expiry dates running from June 18 through September. Analysts reportedly lifted their targets on the pharma name this week. That combination — positive analyst momentum plus active near-dated options — points to positioning for a move higher.

KMX earnings land this week. Its options market is thin. Only three expiries are listed. That tells you hedgers are not expecting a major surprise — or liquidity is thin enough to warrant caution.

HTZ and CAR both sit on heavily shorted books. Both carry eight options expiry dates through September. The rental car sector faces macro pressure from oil prices easing. Watch for put buyers to rotate into next month's expiries as the story develops.