52-Week Low Alert: Trading today’s movement in ALLSTATE $ALL

Quantchabot has detected a promising Bear Call Spread trade opportunity for ALLSTATE (ALL) for the 21-Apr-2023 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ALL was recently trading at $109.37 and has an implied volatility of 34.61% for this period. Based on an analysis of the options available for ALL expiring on 21-Apr-2023, there is a 34.19% likelihood that the underlying will close within the analyzed range of $98.32-$109.89 at expiration. In this scenario, the average linear return for the trade would be 22.95%.

52 week low: ALLSTATE recently reached a new 52-week low at $109.27. ALL had traded in the range $111.85-$144.46 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if ALL maintains its current direction and does not revert back to pricing on the bullish side of $109.37 on 21-Apr-2023. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if ALLSTATE closes at or below $110.15 on 21-Apr-2023. Based on our risk-neutral analysis, there is a 50.87% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.






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