4 Trade Ideas for Allstate: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Allstate, $ALL, comes into the week approaching resistance. It has a RSI rising in the bullish zone and attempting to make a higher high to end the momentum divergence in place since September. The MACD is crossing up into positive territory. The Bollinger Bands® are running sideways. There is no resistance above 198. Support lower is at 195.25 and 193 then 190.50. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.87% and has traded ex-dividend since August 30th.

The company is expected to report earnings next on February 5, 2025. The November options chain shows biggest open interest at the 180 put strike and the 195 and 210 call strikes. In the December chain open interest is spread from 190 to 150 on the put side and builds from 180 to a peak at 200 on the call side. The January chain has biggest open interest at the 170 and 155 put strikes and at 210 then 185 on the call side. The April chain, the fist covering the next earnings report, is just getting started.

Allstate, Ticker: $ALL

Trade Idea 1: Buy the stock on a move over 198 with a stop at 190.50.

Trade Idea 2: Buy the stock on a move over 198 and add a December 195/190 Put Spread ($2.05) while selling the January 220 Call (95 cents).

Trade Idea 3: Buy the December/April 210 Call Calendar ($6.55) while selling the January 185 Put ($2.85).

Trade Idea 4: Buy the January 185/200/210 Call Spread Risk Reversal ($1.15).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the Presidential Election and November FOMC meeting in the rearview mirror, saw equity markets showed jubilation as they vaulted higher.

Elsewhere look for Gold to in its uptrend while Crude Oil consolidates in a broad range. The US Dollar Index continues to move to the upside while US Treasuries consolidate in their pullback. The Shanghai Composite looks to continue the move higher while Emerging Markets chop in their short term uptrend.

The Volatility Index looks to remain low and drifting lower following the election making it easier for equity markets to continue higher. Their charts look strong on both timeframes, especially the SPY and QQQ. The IWM has now joined the party, a stone’s throw away from making its first new all-time high in 2 years. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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