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I want to extend the transparent area Of the alien’s layer to fit the canvas without disturbing the alien’s location
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If you want to add more transparent area to the image, use Image > Canvas Size and make the convas bigger.
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Thank you for the response though that affects the entire canvas. The canvas is already the right size, but I want the subjects layer size to match the canvas size by adding transparent area
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The area around the object is transparent already so you don't need to do anything
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Checkerboard (in your image) is representing transparency.
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Do you mean you want to resize the subject to fit the canvas bounds? If the bounds of the subject aspect ratio is not the same Aspect ratio as the canvas has. The resized subject will not touch all four canvas edges. The alien’s position will change for the alien will be larger fill more canvas area.
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Exactly. You can't resize the image to make it fit into the canvas boundary without making it move.