Allstate has been trending higher for months, and one investor
is betting that the insurance stock will keep running.
optionMONSTER's Heat Seeker tracking system detected the purchase
of about 13,000 February 29 calls for $0.70 and the sale of an
equal number of January 28 calls for $0.80. Volume was below open
interest in January but not in February, which suggests that an
existing long position was rolled from one contract to the other.
That provides the investor with an additional month to profit from
a rally. He or she also collected a $0.10 credit.
ALL is up 0.33 percent to $27.79 this afternoon and more than 17
percent in the last three months. It's been climbing along with
other insurance stocks and has beaten estimates the last two times
it reported earnings. The next release is scheduled for the morning
of Feb. 2.
Overall option volume is 6 times greater than average in the name
so far today. Calls outnumber puts by 34 to 1, according to the
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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