Alcoa Stock Surges After Earnings, Share Repurchase Program

Options volume is taking off as well

Deputy Editor
Oct 15, 2021 at 10:30 AM
facebook X logo linkedin

Aluminum stock Alcoa Corp (NYSE:AA) is surging today, up 13.2% to trade at $55.03 at last check, after the company announced better-than-expected third-quarter results and a $500 million buyback program. No fewer than three analysts raised their price targets after the event, including Credit Suisse to $62. 

On the charts, today's positive price action has AA trading a fresh three-year highs, and jumping above pressure at the $52 level. On track for its fifth-straight day of gains, Alcoa stock is up 137.2% year-to-date. 

Still, there is plenty of short-covering potential. Short interest has risen 10.1% during the most recent reporting period, and now makes up 6.6% of the stock's available float. There is room for upgrades from the brokerage bunch as well. Of the eight analysts in coverage, three carry a tepid "hold" rating on AA. Plus, before today's adjustments, the 12-month consensus price target of $57.2% was a slim premium to current levels. 

The options pits are bursting with activity, with options volume seeing nine times what's typically seen at this point, and pacing for the top percentile of its annual range. So far, 44,000 calls and 14,000 puts have crossed the tape. The October 55 call is the most popular, with new positions being bought to open there -- showing plenty of call traders betting on more upside by the contract's expiration today. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI