Swing Trade Idea (ALL) – November 7, 2023
Our bearish trade for Tuesday, November 7th is Allstate Corp (ALL). ALL is part of the Financial Sector, which has performed at 5.22% over the last week, with ALL underperforming at 4.02% over the same period.
ALL together with its sector, has traded into areas of resistance after a short burst to the upside. ALL is currently trading at $130 which is a long-term resistance level. We therefore believe that ALL will not trade higher over the duration of this trade, which provides us with an opportunity to collect a premium on a bearish Credit Spread which provides us with a net premium of over 40% of the Premium/Width.
As a close, if ALL were to trade below $133 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $4.36.