Deep-pocketed investors have adopted a bearish approach towards Alcoa AA, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in AA usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 11 extraordinary options activities for Alcoa. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 45% leaning bullish and 54% bearish. Among these notable options, 9 are puts, totaling $505,027, and 2 are calls, amounting to $149,975.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $25.0 to $50.0 for Alcoa over the last 3 months.
Insights into Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Alcoa's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Alcoa's whale trades within a strike price range from $25.0 to $50.0 in the last 30 days.
Alcoa Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AA | PUT | SWEEP | BULLISH | 09/20/24 | $14.9 | $14.8 | $14.8 | $50.00 | $128.7K | 24 | 89 |
| AA | PUT | SWEEP | BEARISH | 10/18/24 | $4.25 | $4.2 | $4.25 | $35.00 | $110.5K | 329 | 260 |
| AA | CALL | TRADE | BULLISH | 05/17/24 | $10.75 | $10.6 | $10.75 | $25.00 | $102.1K | 500 | 96 |
| AA | PUT | SWEEP | NEUTRAL | 09/20/24 | $3.85 | $3.8 | $3.85 | $35.00 | $56.5K | 530 | 986 |
| AA | CALL | SWEEP | BEARISH | 09/20/24 | $5.5 | $5.4 | $5.5 | $35.00 | $47.8K | 1.4K | 6 |
About Alcoa
Alcoa Corp is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is a bauxite miner and alumina refiner by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain. The company segments include Bauxite; Alumina and Aluminum. It generates maximum revenue from the Aluminum segment. Geographically, it derives a majority of its revenue from the United States.
Alcoa's Current Market Status
- Trading volume stands at 6,025,898, with AA's price up by 0.49%, positioned at $35.65.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 89 days.
What Analysts Are Saying About Alcoa
Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $37.0.
- An analyst from B. Riley Securities has decided to maintain their Neutral rating on Alcoa, which currently sits at a price target of $31.
- Maintaining their stance, an analyst from BMO Capital continues to hold a Market Perform rating for Alcoa, targeting a price of $37.
- An analyst from UBS persists with their Sell rating on Alcoa, maintaining a target price of $32.
- An analyst from Jefferies has decided to maintain their Buy rating on Alcoa, which currently sits at a price target of $48.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Alcoa, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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