Investors with a lot of money to spend have taken a bullish stance on Alcoa AA.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AA, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 8 uncommon options trades for Alcoa.
This isn't normal.
The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $96,975, and 6 are calls, for a total amount of $230,762.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $30.0 and $45.0 for Alcoa, spanning the last three months.
Volume & Open Interest Development
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Alcoa's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Alcoa's significant trades, within a strike price range of $30.0 to $45.0, over the past month.
Alcoa 30-Day Option Volume & Interest Snapshot
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| AA | CALL | SWEEP | BULLISH | 07/19/24 | $8.6 | $8.6 | $8.6 | $30.00 | $55.0K | 3.8K | 36 |
| AA | PUT | TRADE | BULLISH | 07/19/24 | $6.65 | $6.55 | $6.55 | $45.00 | $49.1K | 961 | 266 |
| AA | PUT | SWEEP | BEARISH | 07/19/24 | $4.35 | $4.25 | $4.35 | $43.50 | $47.8K | 133 | 0 |
| AA | CALL | SWEEP | BEARISH | 09/20/24 | $1.55 | $1.52 | $1.54 | $45.00 | $38.1K | 2.4K | 547 |
| AA | CALL | SWEEP | BEARISH | 09/20/24 | $1.81 | $1.59 | $1.78 | $45.00 | $37.3K | 2.4K | 43 |
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.
Having examined the options trading patterns of Alcoa, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Alcoa's Current Market Status
- With a volume of 4,524,829, the price of AA is down -4.31% at $38.59.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 7 days.
Expert Opinions on Alcoa
In the last month, 2 experts released ratings on this stock with an average target price of $48.0.
- Maintaining their stance, an analyst from B of A Securities continues to hold a Neutral rating for Alcoa, targeting a price of $46.
- In a positive move, an analyst from Morgan Stanley has upgraded their rating to Overweight and adjusted the price target to $50.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Alcoa options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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