Alcoa （AA - option chain） stock is trading lower with other aluminum stocks on reports that premiums for aluminum shipments to Japan will likely fall during the first quarter of 2011.
A report stated that analysts believe aluminum premiums are already in a downtrend and could dip as much as 10%. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on AA.
Alcoa would have to rise by more than 15% before we would start to lose money.
AA hasn't been above $15 at all since April and has shown resistance around $14.15 recently.
豫公网安备41010502003434号