Summary
- Allstate exhibits a persistent $170-$210 trading range, making it ideal for systematic options strategies rather than pure equity upside.
- ALL’s strong earnings, robust capital returns, and improving underwriting margins support the downside, while catastrophic risk events cap the upside.
- Option strategies like cash-secured puts and covered calls exploit ALL’s range-bound nature, offering attractive risk-adjusted income oppor…
Summary
- Allstate exhibits a persistent $170-$210 trading range, making it ideal for systematic options strategies rather than pure equity upside.
- ALL’s strong earnings, robust capital returns, and improving underwriting margins support the downside, while catastrophic risk events cap the upside.
- Option strategies like cash-secured puts and covered calls exploit ALL’s range-bound nature, offering attractive risk-adjusted income opportunities.
- Defined-risk spreads, such as iron condors, allow traders to capitalize on volatility spikes while capping exposure to sudden catastrophic losses.
Guido Mieth/DigitalVision via Getty Images
Allstate (ALL) is known as a traditional Property and Casualty (P&C) insurer. However, besides the usual P&C exposure to auto and homeowners, Allstate has extended into protection and service businesses as well. These things are part of its equity
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