Investors Bet an Upside Move From Insurance Provider
Allstate is scheduled to report second-quarter earnings after the closing bell today, and some investors are wagering on a move higher.
OptionMonster's tracking systemsdetected heavy trading yesterday in the September 30 calls, which changed hands mostly for $0.40 to $0.65. Volume in the strike was nearly 11 times open interest at 12,449. Although it wasn't absolutely clear that the calls were bought, most of the price action was consistent with purchases.
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Allstate ended the regular session up 2.96 percent to $28.17 but slipped $0.22 in after-hours trading. The shares are up 17 percent in the last month.
The property and casualty insurer needs to climb a further 9 percent for calls accumulated today to turn a profit. Overall options volume in the name was more than four times average, with calls outnumbering puts by 6 to 1.
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David Russell is a reporter and writer for OptionMonster.