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David Russell, reporter for OptionMonster.

The bulls are putting their money "in good hands" this morning, betting on a rally in Allstate ( ALL) before its earnings report two weeks from now.

OptionMonster's tracking systems detected the purchase of 5,000 August 25 calls for $1.10 against open interest of 2,333 contracts. The transaction accounted for more than 80% of the options activity in the name today.

Allstate rose 1.4% to $24.57 in morning trading. The insurance stock has moved sideways for more than two months, holding support at $23 while making lower highs. It would need to climb at least 6% by expiration for the calls purchased today to turn a profit.

Allstate is scheduled to release second-quarter earnings after the bell on Aug. 5. The company missed analysts' forecasts because of investment losses and lower premium income the last time it reported earnings on May 7. Some investors may be more bullish now on the belief that higher stock prices since March bolstered results.

Call volume in the name exceeded puts by 13 to 1, reflecting the bullish sentiment.