Category Archives: AA

Alcoa

Bear Market Specials

The VIX closing at it’s highs today at over 46 and the talking heads are spewing armageddon. I’ve heard: “falling off the cliff”,  “throwing the baby out with the bathwater”, and “big and bold” too many times today. I bought a few lottery tickets, with all the group pessimism, I couldn’t resist buying some calls and buying some large cap stocks today (AA, CSCO, F ).

The most surprising (for me) non-mover today was the Euro. I was expecting more downside and continue to expect it to break under 1.40.

There’s lots of attention on the Fed tomorrow.

With each soundbyte I cringe.

(Wikipedia on “To Throw out the baby with the bath water“. They say it’s origin is German…)

Alcoa Bearish Option Bet

I just saw a spread trade pass which I think was constructed as follows:

At the time the spread was executed it cost about 0.03

The real ratios were 975 to 2900.

It looks like the trader is bearish well into July and protecting against the volatility likely in the near term.

Alcoa earnings are July 11th. $AA

To quote Gartman today:
Concerning the base metals, all are turning downward,
and some turned downward quite some while ago, and
as they turn downward they are sending overtly bearish
signals to the market about the tenuous and perhaps
bearish nature of the global economy itself. The charts
of zinc, tin and aluminium all look quite bearish to us…

If this plays out, I like the correlation. Thank you Dennis.