Behind the Scenes of Alcoa's Latest Options Trends

Investors with a lot of money to spend have taken a bearish 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 13 uncommon options trades for Alcoa.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 69%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $74,493, and 11 are calls, for a total amount of $493,032.

What's The Price Target?

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 $35.0 for Alcoa over the last 3 months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Alcoa stands at 3107.25, with a total volume reaching 9,957.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Alcoa, situated within the strike price corridor from $25.0 to $35.0, throughout the last 30 days.

Alcoa Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

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.

Following our analysis of the options activities associated with Alcoa, we pivot to a closer look at the company's own performance.

Present Market Standing of Alcoa

• With a trading volume of 3,511,754, the price of AA is up by 3.08%, reaching $32.75.
• Current RSI values indicate that the stock is may be oversold.
• Next earnings report is scheduled for 77 days from now.

Professional Analyst Ratings for Alcoa

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $44.666666666666664.

• Consistent in their evaluation, an analyst from B of A Securities keeps a Neutral rating on Alcoa with a target price of $43.
• An analyst from B. Riley Securities persists with their Neutral rating on Alcoa, maintaining a target price of $43.
• Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Alcoa with a target price of $48.

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.