Alcoa attracts some attention from option bulls


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Option traders piled into a bet on Alcoa Corp ( AA ) this morning. Exactly 1,000 contracts moved in a series of odd lots between 9:38 and 9:39 Thursday morning. All of the trades were at prices ranging from .85 to $1.00 per share. This seems to have been a programatic buy, and since the previous open interest was 167, it seems like this is a new position that was opened.

InvestorsKeyhole Trade Alert

IK-> The technicals for AA ($32.02 up $0.74) are neutral with a downward trend. The stock has support about $30.43. Look at the May 25/28 bull-put spread for a 20-cent credit. That's a 7.1% return and the stock has to fall by 12.6% to cause a problem. [InvestorsKeyhole, various news and data services]

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com



This article appears in: Investing , Options


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