Market Whales and Their Recent Bets on Alcoa Options

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 38% bullish and 53%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $243,403, and 7 are calls, for a total amount of $533,405.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $33.0 and $45.0 for Alcoa, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $33.0 to $45.0 in the last 30 days.

Alcoa Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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.

Present Market Standing of Alcoa

• With a trading volume of 5,624,679, the price of AA is up by 9.16%, reaching $39.31.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 20 days from now.

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 $38.25.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * In a cautious move, an analyst from JP Morgan downgraded its rating to Neutral, setting a price target of $36. * Showing optimism, an analyst from Wolfe Research upgrades its rating to Outperform with a revised price target of $36. * Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Alcoa, targeting a price of $40. * An analyst from B. Riley Securities has decided to maintain their Neutral rating on Alcoa, which currently sits at a price target of $41.

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.