Prudential Financial attracts upside bet
Traders are looking for Prudential Financial to rally in the next two weeks.
optionMONSTER's monitoring program shows that about 11,700 July 72.50 calls were purchased mostly for $0.63 to $0.83 yesterday. This represents fresh buying, as open interest in the strike was only 860 contracts before the session began.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
PRU rose 2.1 percent to $70.14 yesterday but is down 14 percent in the last month. The insurance firm, which reported mixed results on May 4, is scheduled to announce its next quarterly numbers after the close on Aug. 3.
Overall option volume was 3 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 7-to-1 ratio.
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