Investors in Allstate Corp (NYSE: ALL) gained access to new options today, with expiration set for June 2027. Notably, a put contract at the $220.00 strike price has a current bid of $17.50, which would effectively lower the buy-in cost to $202.50 for potential investors, providing an approximate 2% discount from the current share price of $225.35. The odds of this put contract expiring worthless are estimated at 62%, equating to a potential return of 7.95% on cash commitment.
On the calls side, a $240.00 strike call contract with a bid of $18.50 offers a possible total return of 14.71% if the stock is called away. This strike represents a 6% premium to the current stock price, with a likelihood of expiring worthless calculated at 52%. Should this occur, it would provide an additional yield boost of 8.21% to investors.
The implied volatility for the put contract is at 28%, while the call’s is at 29%. Overall, Allstate’s actual trailing twelve-month volatility is measured at 24%.
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