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Prudential Financial, Inc. Message Board

  • jcotton15 jcotton15 Jan 15, 2012 8:18 AM Flag

    PRU options

    Back when PRU sold in the low 60's, I sold some 50 and 52.5 puts for a few dollars and then saw their value go way down as the stock dropped into the high 40's. It looks like they will expire worthless next Friday and I can pocket the premium I received.

    Now,looking forward to selling more puts, I see where the January 13 puts appear to be selling for substantial money. For instance the 50 put is bid at 6.40 and even the 23 put is bid at 77 cents. My question is what do people see in this stock to suggest it will drop far from its current price within the next year? Why would anyone give $6.40 to protect their shares that will have to drop below 43.60 for this to be worthwhile to them? Am I missing something?

    Thanks for comments.

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