Home / Business and Economy / Rare-Earth Stock ALOY Sees Surge in Put Options Before Earnings
Rare-Earth Stock ALOY Sees Surge in Put Options Before Earnings
13 Aug
Summary
- Unusual put options volume for REalloys Inc. (ALOY) suggests investor speculation.
- Analysts expect a reduced earnings per share loss for ALOY next week.
- US policy aims to reduce China's rare-earth magnet dominance by 2027.
Investors are closely watching REalloys Inc. (ALOY) as heavy options volume indicates potential bullish sentiment preceding its upcoming earnings announcement. ALOY's stock price has seen fluctuations, trading at $12.85, up from a recent low but below its June peak. Analysts forecast a narrower earnings per share loss of 5 cents for the company.
The U.S. government has established a January 1, 2027, deadline to reduce reliance on China for rare-earth materials in defense contracts. This policy goal highlights the strategic importance of rare-earth companies like ALOY. However, many in the sector, including ALOY, are not yet profitable and have recently raised capital; ALOY secured $100 million in private equity funding at $14.25 per share on June 26.
Significant unusual put options volume for ALOY, with over 7,500 contracts traded for September 18 expiry at $10.00, could signal expectations of a further dilutive capital raise. This activity occurs well before the August 19 earnings release, the results of which will be closely scrutinized by investors.
