A whale with a lot of money to spend has taken a noticeably bullish stance on Alcoa.
Looking at options history for Alcoa (NYSE:AA) we detected 22 strange trades.
If we consider the specifics of each trade, it is accurate to state that 54% of the investors opened trades with bullish expectations and 45% with bearish.
From the overall spotted trades, 11 are puts, for a total amount of $795,680 and 11, calls, for a total amount of $6,749,790.
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 $45.0 to $110.0 for Alcoa over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Alcoa options trades today is 1265.77 with a total volume of 7,267.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Alcoa's big money trades within a strike price range of $45.0 to $110.0 over the last 30 days.
Alcoa Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AA | CALL | SWEEP | BULLISH | 04/14/22 | $45.00 | $4.4M | 1.1K | 1.0K |
| AA | CALL | TRADE | BULLISH | 01/20/23 | $55.00 | $753.0K | 6.3K | 500 |
| AA | CALL | TRADE | BULLISH | 01/20/23 | $55.00 | $375.0K | 6.3K | 300 |
| AA | CALL | TRADE | BULLISH | 01/20/23 | $55.00 | $372.9K | 6.3K | 200 |
| AA | CALL | TRADE | BULLISH | 01/20/23 | $55.00 | $372.0K | 6.3K | 100 |
Where Is Alcoa Standing Right Now?
- With a volume of 3,158,612, the price of AA is up 0.8% at $88.42.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 14 days.
What The Experts Say On Alcoa:
- Deutsche Bank has decided to maintain their Hold rating on Alcoa, which currently sits at a price target of $90.
- Citigroup has decided to maintain their Buy rating on Alcoa, which currently sits at a price target of $84.
- Jefferies has decided to maintain their Buy rating on Alcoa, which currently sits at a price target of $98.
- Argus Research has decided to maintain their Buy rating on Alcoa, which currently sits at a price target of $95.
- Morgan Stanley downgraded its action to Equal-Weight with a price target of $100
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.
