Two Large Call Trades in Alcoa (AA)

Shares of Aloca Inc. AA are higher on the session by 0.10%, currently trading at $10.74. The stock has been moving largely lower over the past four months, off from recent highs near $15.00. AA is currently trading below the 50-day and 200-day moving averages. Options trading is favoring the call side today, but direction is interestingly mixed. Two large trades have been detected on the January 2011 $12.50 call line; the first was the purchase of a 5,700 contract block for $0.53, but the second, which hit the tap 22 minutes later, was the sale of a 7,500 contract block for $0.55. Open interest on the strike is 73,606 contracts. Alcoa Inc. is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. The company's products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications.