Looking At Alcoa's Recent Unusual Options Activity

Whales with a lot of money to spend have taken a noticeably bearish stance on Alcoa.

Looking at options history for Alcoa AA we detected 23 trades.

If we consider the specifics of each trade, it is accurate to state that 13% of the investors opened trades with bullish expectations and 86% with bearish.

From the overall spotted trades, 6 are puts, for a total amount of $211,677 and 17, calls, for a total amount of $930,751.

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Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $26.5 to $40.0 for Alcoa over the recent 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 $26.5 to $40.0, over the past month.

Alcoa Call and Put Volume: 30-Day Overview

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 the world's largest 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

Current Position of Alcoa

• With a volume of 2,386,029, the price of AA is down -1.68% at $33.43.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 15 days.

What The Experts Say On Alcoa

4 market experts have recently issued ratings for this stock, with a consensus target price of $29.25.

• Maintaining their stance, an analyst from B of A Securities continues to hold a Neutral rating for Alcoa, targeting a price of $36.
• An analyst from HSBC has revised its rating downward to Hold, adjusting the price target to $29.
• Maintaining their stance, an analyst from Morgan Stanley continues to hold a Underweight rating for Alcoa, targeting a price of $27.
• Consistent in their evaluation, an analyst from B. Riley Securities keeps a Neutral rating on Alcoa with a target price of $25.

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.