Options Traders Target Struggling Alcoa Stock

AA is down 34% year-to-date

Deputy Editor
Oct 17, 2022 at 2:05 PM
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Alcoa Corp (NYSE:AA) is up 2.7% at $39.39 at last glance, but still struggling to break above the $40 level, which has been an area of resistance since the start of the month. Longer term, AA's 100-day moving average has been keeping a lid on rallies. Slightly removed from its Sep. 30, one-year low of $33.55, the security is down 34% year-to-date. 

AA Oct17

Amid its underperformance, AA has been extremely popular amongst options traders. In fact, the stock just showed up on Schaeffer's Senior Quantitative Analyst Rocky White's list of S&P 400 (IDX) members with the highest options volume in the past two weeks. During this time, 177,132 calls and 130,200 puts were exchanged. The most active contract was the November 45 call. 

MAO Oct17

 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Alcoa stock sports a 50-day put/call volume ratio of 0.73 that sits higher than 92% of readings from the past year. This indicates puts are getting picked up at a faster-than-usual clip.

Options buyers, meanwhile, are in luck. AA's Schaeffer's Volatility Scorecard (SVS) tally sits at 82 out of 100, which points towards the equity's tendency to outperform volatility expectations. 

 

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