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Blitz Daily: Why a Euro Power Crunch is Driving Aluminum Options Activity

by | Dec 22, 2021

In Wednesday’s Blitz Daily, we take a look at basic materials behemoth Alcoa as facility closures and skyrocketing European gas prices tighten aluminum supplies.

Europe’s energy crunch doesn’t look like it’s going to let up anytime soon. European gas prices are about 14 times higher than in the U.S., and the sky-high energy costs are disrupting energy-intensive aluminum production across the continent… And aluminum prices are climbing as supply and production capacity tighten.

Traders looking to benefit from higher aluminum prices have been turning to Alcoa Corp., with bullish options activity spiking during the shortened trading week.

Shares of Alcoa have jumped nearly 14.5% from Monday’s opening price of $51.89 as Tuesday saw traders hit the Jan. 7, 2022, $58 strike calls, buying more than 10,000 contracts…

And the bulls are back again Wednesday, with one trader scooping up more than 11,000 contracts of the Jan. 7, 2022, $60 strike calls, laying just over $250,000 on the line.

On top of this red-hot metals trade, I have three more must-see options plays waiting below…

    • Alcoa Corp. (NYSE: AA): Jan. 7, 2022, $60 CALL.
    • Occidental Petroleum Corp. (NYSE:OXY): Aug. 19, 2022, $35 CALL. 
    • Under Armour Inc. (NYSE: UAA): Jan. 7, 2022, $20.50 CALL. 
    • United Airlines Holdings Inc. (Nasdaq: UAL): Feb. 18, 2022, $48 CALL.

For more guidance through the stock markets and big-money trades like these as we head into the weekend, check out my Wiretap Alerts strategy!

P.S. Anyone placing trades during the week may actually be stacking the cards against themselves…

Look, every week, thousands of headlines like earnings or bad news out of the Federal Reserve or China wreck what may seem to be perfectly good trade setups. 

So instead of traders risking their hard-earned cash during the meat of the week, there’s a simple Friday afternoon strategy that is able to skip all of the madness…

It taps into some of the most reliable forces in the market, already giving New Money Crew Head Trader Lance Ippolito direct access to gains like 62% on PM, 28% on AMC and 30% on UAL, all in the past couple of weeks!

Learn How It Works  

Blitz Daily With Lance Ippolitto

At Weekly Blitz Alerts, we like to print money, baby! I know, I know, you’re probably thinking, “Lance, how do we do that? Print money? Come on…”  

But in all seriousness, we follow the big fish and what they’re buying. And we do that with my proprietary Blitz Tracker, which alerts me to big, institutional options order flow throughout the day. Then we get in on these plays and follow the “smart money.”  

By doing this, we cash in whether the broader market is going up, down or sideways. 

The Blitz Daily with Lance Ippolito is where I go over a handful of options trades that hit my Blitz Tracker each day, Monday through Thursday. I will break down the trade with the sexiest order flow and tell you exactly what I think can happen with that stock by the next day’s opening bell. 

If you want in on these fast-moving options plays, with entry, exit and profit targets sent directly to you via text and email alerts, be sure to sign up for Weekly Blitz Alerts!  

In the meantime, you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading — and printing money — on WealthPress.com!

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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