Alcoa (AA - option chain) stock is trading lower today after the company looks like it has missed a deadline for a new labor deal. for the second time today. AA announced earlier today that it had extended the deadline to negotiate a new labor deal with the United Steelworkers Union, its largest union covering 5,400 employees at 10 plants. The union's contract was to expire at 1 AM this morning, but was extended 11 hours until noon and just before noon, the company announced a tentative agreement. No terms have been released and the union still needs to ratify it as well. 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.

This morning, AA opened at $11.43. So far today the stock has hit a high of $11.68 and a low of $11.35. As of 12:15, AA is trading at $11.45, down $0.19 (-1.6%). The chart for AA looks bullish and S&P gives AA a positive 4 STARS (out of 5) buy ranking.

Over a week ago, the European private equity firm Terra Firma extended the deadline for its offer to buy EMI Group PLC (LSE: EMI) from July 5 to July 12. It was the second extension the firm had made, and this morning a third extension was made until July 19. According to Billboard.com, by 1 p.m. yesterday, just 3.82% of EMI's shares had been sold to Terra Firma. A week ago, that figure was 3.56%.

Yesterday, the European Commission approved the buyout; the regulatory commission found no antitrust issues. At the same time, EMI stocks dropped from the boost they enjoyed last week, falling from 271 pence on Wednesday's closing to close at 268.75 yesterday afternoon. The stock has fared nicely today, but has not risen much more than one pence in trading.

This third extension from Terra Firma comes in the face of continued hopes from EMI shareholders that Warner Music Group (NYSE: WMG) will make a counterbid. Billboard.com has also commented that "WMG is reported to have appointed Alan Mnuchin, of Wall Street investment group AGM Partners, to re-assess how to make another counterbid for EMI."

A merger between EMI and WMG might be beneficial for shareholders, but consumers of music from both companies may not be as happy. EMI dropped the use of Digital Rights Management technology in April, paving the way for higher quality downloads from online stores like Apple Inc. (NASDAQ: AAPL)'s iTunes Store and a future Amazon.com (NASDAQ: AMZN) store. WMG has remained firm in its support for DRM use. A combination of the two may result in the reversal of DRM-free use of EMI's products.