Building it back with Aluminum – Alcoa (AA)

Alcoa (AA) beat earnings after close yesterday and was up in after hours trading, but fell with the rest of the markets this morning.  I took that opportunity to sell naked puts on it.  While AA was trading at 31.59 I sold four February 30 naked puts (AANF) and received $387.00 after commissions.  I missed the bottom for AA this morning, but think the worst has past for it in the near term.

30 has been a strong support level for AA since last January and after a good earnings report I am banking on them holding up for another month and a half for my options to expire worthless.  That’s the only part of the chart I like right now for AA and hope it’s enough. 

I have a limit in to sell covered calls on DWA and try to get out of that position with a little less of a loss.  CAT is down for me, but that means my covered calls should expire worthless this month.  Actually the chart looks like CAT might be ready for a little comeback and that has me debating if I should sell some new naked puts farther out of the money.