ITUB: Shorts Exit as Put Buyers Step In

[Itaú Unibanco](/s/us/itub) is sending a mixed signal this week. Short sellers are covering fast. But options traders are bracing for more downside.

The divergence is sharp enough to warrant attention.

## Shorts Flee a Sinking Stock

Short interest in [ITUB](/s/us/itub) has collapsed 35.6% in one week, falling to 14.8M shares as of May 13 from a peak of 22.9M on May 5. That's the fastest…