Huge Options Volume on Allstate (ALL)

Shares of Allstate Corp. ALL are higher on the session by 1.27%, currently trading at $30.33. The stock has been running lower for the past three months, but appears to be finding some support around the $29-30 level. Options volume is running at 12x the daily average today with the vast majority of volume coming from two large, very large call spreads. The October $34/35 call spread was purchased 11,000 by 13,000 times for $0.24 and the January 2011 $34/35 call spread was purchased 23,000 by 26,000 times for $0.28. While these may be clear-cut, opening call spreads, it is unclear because each spread was done on strikes with sizable open interest already, which might suggest that call positions were rolled higher. If that were the case, the action would be bearish, representing a short call holder buying back those contracts only to get re-short at a higher strike. The Allstate Corporation is a holding company of Allstate Insurance Company. The Company's business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. Allstate is primarily engaged in the personal property and casualty insurance business, and the life insurance, retirement and investment products business. It conducts its business primarily in the United States.