ALL Covered Call Strategy
ALL (The Allstate Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
The Allstate Corporation, along with its affiliated entities, provides a comprehensive suite of property, casualty, and other insurance offerings throughout the United States and Canada. The company's operations are structured across four primary business segments: Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability. The Allstate Protection segment delivers a wide array of personal and commercial insurance solutions. This includes standard private passenger auto and homeowners policies, as well as specialized vehicle coverage for motorcycles, trailers, motor homes, and off-road vehicles. Additional personal lines encompass renter, condominium, landlord, boat, umbrella, manufactured home, and stand-alone scheduled personal property policies. Commercial lines products are also available, marketed under the Allstate and Encompass brand names.
ALL (The Allstate Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $67.29B, a trailing P/E of 5.03, a beta of 0.16 versus the broader market, a 52-week range of 188.08-277.22, average daily share volume of 1.7M, a public-listing history dating back to 1993, approximately 53K full-time employees. These structural characteristics shape how ALL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.16 indicates ALL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 5.03 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ALL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on ALL?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
ALL snapshot
As of August 14, 2026, spot at $261.40, ATM IV 22.90%, IV rank 29.70%, expected move 6.57%. The covered call on ALL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on ALL specifically: ALL IV at 22.90% is on the cheap side of its 1-year range, which means a premium-selling ALL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.57% (roughly $17.16 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALL should anchor to the underlying notional of $261.40 per share and to the trader's directional view on ALL stock.
ALL covered call setup
The ALL covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ALL at $261.40 on that close, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALL chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ALL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $261.40 | long |
| Sell 1 | Call | $270.00 | $3.90 |
ALL covered call risk and reward
- Net Premium / Debit
- -$25,750.00
- Max Profit (per contract)
- $1,250.00
- Max Loss (per contract)
- -$25,749.00
- Breakeven(s)
- $257.50
- Risk / Reward Ratio
- 0.049
Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
ALL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ALL. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$25,749.00 |
| $57.81 | -77.9% | -$19,969.41 |
| $115.60 | -55.8% | -$14,189.82 |
| $173.40 | -33.7% | -$8,410.24 |
| $231.19 | -11.6% | -$2,630.65 |
| $288.99 | +10.6% | +$1,250.00 |
| $346.79 | +32.7% | +$1,250.00 |
| $404.58 | +54.8% | +$1,250.00 |
| $462.38 | +76.9% | +$1,250.00 |
| $520.17 | +99.0% | +$1,250.00 |
When traders use covered call on ALL
Covered calls on ALL are an income strategy run on existing ALL stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ALL thesis for this covered call
The market-implied 1-standard-deviation range for ALL extends from approximately $244.24 on the downside to $278.56 on the upside. A ALL covered call collects premium on an existing long ALL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ALL will breach that level within the expiration window. Current ALL IV rank near 29.70% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ALL at 22.90%. As a Financial Services name, ALL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALL-specific events.
ALL covered call positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ALL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALL alongside the broader basket even when ALL-specific fundamentals are unchanged. Short-premium structures like a covered call on ALL carry tail risk when realized volatility exceeds the implied move; review historical ALL earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ALL?
- A covered call on ALL is the covered call strategy applied to ALL (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With ALL stock at $261.40 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ALL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALL covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the ALL covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.90%), the computed maximum profit is $1,250.00 per contract and the computed maximum loss is -$25,749.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALL covered call?
- The breakeven for the ALL covered call priced on this page is roughly $257.50 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ALL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a covered call on ALL?
- Covered calls on ALL are an income strategy run on existing ALL stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current ALL implied volatility affect this covered call?
- ALL ATM IV is at 22.90% with IV rank near 29.70%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.