DailyPlay – Opening Trade (ALL) – September 26, 2024

ALL Bullish Opening Trade Signal

Investment Rationale

Allstate Corp. (ALL) is undervalued, with strong fundamentals, including a 12.00% annual sales growth rate and a projected earnings growth rate of 19.00%. Its low P/E ratio of 12.06 and a dividend yield of 1.94%, along with a strong dividend growth rate of 14.00%, further enhance its attractive valuation.

ALL remains in a strong bullish trend with its recent pullback to its $190 support level provides an attractive risk to reward for seeking long exposure.

ALL – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 5 ALL October 18 $185/$180 Put Vertical Spreads @ $90.00 Credit per Contract.

Total Risk: This trade has a max risk of $2,050 (5 Contracts x $410) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $410 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is currently in a strong bullish trend and with fundamental views aligned to the upside.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 88

Stop Loss: @ $180 (100% loss to the value of premium)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

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