Allstate Corp (ALL) closed Friday at $69.14 and technical indicators recently have been bearish. Based in part on those numbers, MarketIntelligenceCenter.com's patented algorithms have identified a couple of attractive trading opportunities in Allstate for today.
For investors looking for a high return, consider a diagonal spread pairing a long position in the Jan. '16 $55.00 call and a short position in the Jul. '15 $67.50 call for a net debit of about $11.50. This trade has an assigned return of 8.70% and 3.82% downside protection.
For more a more conservative play, look at a covered call using the Jul. '15 $67.50 call for a $65.69 net debit. This trade has an assigned return of 2.76% but the downside protection increases to 4.99%.
Standard & Poor’s has a 3 STARS (out of 5) hold ranking and a 12-month target price of $73.00 on Allstate. Over the last 52 weeks the stock has traded between $54.81 and $72.87.