Swing Trade Idea (ALL) – July 07, 2022
Our bearish trade for Thursday, July 7th is The Allstate Corporation (ALL). ALL is part of the Financial sector, which has performed at -9.12% over the last month, with ALL overperforming relative to its sector at -0.63% over the same period.
ALL recently rallied into resistance at $131, as strength seem to show weakness. We expected it to retrace lower if this point holds as resistance. This provides a good risk/reward bearish entry.
As a close, if ALL were to trade above $132 for multiple days, this would invalidate our analysis and will consider losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves below $2.08.
