Short interest in IWM has risen steadily since mid-September, climbing from multi-month lows near 82M shares to 87M shares, a 6% increase even as price rose to recent highs. This recent trend in short positioning suggests that bearish conviction is re-emerging.

The gradual decline in the IWM float/outstanding points to steady outflows, and a bias towards net redemptions/sales.

The IWM Put/Call Open Interest Ratio is above 2.4x, near the top of its six-month range. This elevated long put to long call option positioning underscores the persistent demand for downside hedges and continued caution.

According to the latest weekly futures positioning data from Citigroup, US small cap (R2000) exposure has eased following an increase in new short positions.

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