Upside option positions are delivering exceptional profits in Alcoa Corporation (AA).
On Oct. 22, Market Rebellion’s Unusual Activity systems identified massive bullish call buying, with 5,000 31October 39.50 calls bought for $0.53 above open interest of 44 contracts, with AA shares trading at $35.91.
Those 31October 39.50 calls traded as high as $2.53 today with the stock at $41.18, delivering impressive returns of approximately 377.36% from the initial entry price of $0.53. Meanwhile, AA shares gained approximately 14.70% from their initial trading level around $35.91, demonstrating how options can deliver significantly amplified returns compared to simply owning the underlying stock.
This performance illustrates the power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.
Earnings Beat and Aluminum Demand Surge Drive Momentum The primary catalyst behind AA’s explosive move came immediately after the unusual options activity, with Alcoa’s October 22, 2025 earnings report significantly exceeding expectations. The company posted adjusted EBITDA of $450 million, up 20% year-over-year, fueled by surging aluminum prices and enhanced operational efficiency. Management cited strong demand from automotive, aerospace, and packaging sectors, supported by global supply constraints that continue to tighten the aluminum market.
Further momentum was ignited by Alcoa’s announcement of a new $150 million share repurchase program, underscoring management’s confidence in robust free cash flow generation and long-term shareholder value. The rapid sequence of these developments, unfolding within hours of the heavy call buying, created a perfect setup for traders positioned in the October 39.50 calls.
Operational Excellence and Strategic Tailwinds Alcoa reinforced investor confidence with standout operational results. The company reported a 5% sequential increase in alumina production, with its Australian refineries achieving record monthly output. CEO William Oplinger emphasized disciplined cost management and volume growth, stating that “tight market fundamentals and our operational leverage position Alcoa to capture significant upside in this cycle.”
Broader industry tailwinds amplified the move, including ongoing supply disruptions in China, rising energy costs, and increasing demand for low-carbon aluminum in electric vehicles and renewable energy infrastructure. Alcoa’s leadership in sustainable production and recycled aluminum further strengthened its competitive moat, resonating strongly with institutional investors.
AA was last trading at $41.01, up 15.00%.
