Paper bought 9,000 AA July 7 calls paying 1.16 with the stock around 7.30.
Alcoa Inc., trading 7.49 (up .52) with an IV30 of 50.55 and an HV10 of 51.66, is seeing lots of call buying today.? The stock, which has an OI of 996k and an ADV of 50,125, is seeing heavy action at the July 7 strike Traders bought through auto execution 9,000 of the July 7 calls paying 1.16 with the stock around 7.30 or so.? This was clearly a play on the stock not just moving today, but maybe having a bit of a swing higher in the near term.
This trader is hoping that by July AA will be trading over 8.16 or that today?s 7% move is just the beginning of a couple days trend higher.? Earlier in the day a well-timed trader bought the Feb 6.5 calls for .66 with the stock around 7.00 a share.? This trade is up about 100% already in what was an extremely well timed trade.
This trade should be considered bullish the underlying and bullish volatility in AA.