This indicates that investors are covering their short positions rather than re-establishing them as the market declined.
When the NDX recovers, the short positions are not being re-established, suggesting that the market is currently more bullish compared to the past.
Currently, the short position in Nvidia (NVDA) is increasing alongside a rising market, which contrasts with the other stocks in the Magnificent 7, where short positions are declining.
This divergence suggests that NVDA is following its own distinct pattern.
The average line resembles the S&P 500 in that it is uniformly downward-sloping.
This preference for a long strategy is also evident in the open interest of calls versus puts for these seven stocks and the QQQs. Currently, calls are more prevalent, whereas puts usually dominate.
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