Alcoa Inc Option Pain $15

This is Alcoa Inc option pain. Notice the number of $14 Puts is so much higher than that of $14 calls?

Naturally, investors would want the puts to expire worthless since it is worth much more about $6mln worth of stocks.

Yet, this is not really that large, $6mln worth of stock compared to Alcoa Inc daily volume of $400mln a day! However, Option pain takes into account other option contracts as well, not only the $14 contracts

Let us see whether Alcoa will break $14 before option expiry date. If this proves right, then we will witness Option pain theory.

Investors generally want options to expire worthless, that’s the theory. So you can see the $14 PUTS are still worth something if the stock is below $14 on option expiration.

Buy Alcoa Inc AA at $13.5