May. 4 at 9:18 PM
Has anyone else noticed
$BLD and
$QXO trading in absolute lockstep on the 5-day chart?
That's...strange. Classic merger arb should mean they move inversely with
$BLD anchored near the
$505 deal price while
$QXO trades on its own fundamentals. Instead they're correlated tick-for-tick.
Now look at
$QXO short volume over the past 30 days:
• 30-day avg short volume: 68.32% of reported volume
• Last week's sessions short volume: 67% → 73% → 80% → 73% → 78%
• Last Friday alone was 78.44% short on 9M+ shares
Somebody is hammering
$QXO relentlessly. The question is whether that short pressure is bleeding into
$BLD and distorting the arb spread rather than letting it trade on deal fundamentals.
I've never seen anything like it and I can't figure out the strategy in play here. Anyone else seeing this odd pattern and have thoughts?
https://www.investopedia.com/terms/m/mergerarbitrage.asp
https://chartexchange.com/symbol/nyse-qxo/short-volume/