Prudential (PRU) Offering Possible 6.38% Return Over the Next 19 Calendar Days

Prudential's most recent trend suggests a bearish bias. One trading opportunity on Prudential is a Bear Call Spread using a strike $92.50 short call and a strike $97.50 long call offers a potential 6.38% return on risk over the next 19 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $92.50 by expiration. The full premium credit of $0.30 would be kept by the premium seller. The risk of $4.70 would be incurred if the stock rose above the $97.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Prudential is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Prudential is bearish.

The RSI indicator is at 53.48 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Prudential

Prudential Unit to Manage Pension Benefits for Motorola
Fri, 26 Sep 2014 18:50:03 GMT

[$$] Prudential to Take Responsibility for $3 Billion in Pensions From Motorola
Fri, 26 Sep 2014 04:24:34 GMT
The Wall Street Journal – Prudential Financial will take over the pension responsibilities for 30,000 retirees at Motorola Solutions, in the latest big deal in which a corporation offloads to an insurer some of the risks of running …

Competition Lowered Price of Motorola Annuity
Thu, 25 Sep 2014 22:53:24 GMT
The Wall Street Journal – Bidding for Motorola's pension obligations was so intense that the telecommunications equipment company will unload $3.1 billion in bonds and other assets without paying a premium. The auction started …

PRUDENTIAL FINANCIAL INC Files SEC form 8-K, Financial Statements and Exhibits
Thu, 25 Sep 2014 21:09:56 GMT

Motorola Solutions Moves $4.2 Billion in Pensions to Prudential
Thu, 25 Sep 2014 14:02:04 GMT
Bloomberg – Motorola Solutions Inc. (MSI) , the maker of two-way radios and other communications equipment, is transferring $4.2 billion in pension obligations to Prudential Financial Inc. (PRU) to remove risk from its balance sheet. Motorola Solutions plans to contribute $1.1 billion in cash to its U.S. Persistently low interest rates have pressured employers with pension obligations because it’s harder for them to generate returns on funds set aside for the liabilities. General Motors Co. and Verizon Communications Inc. are among companies that have opted to buy such annuity contracts from Newark , New Jersey-based Prudential.

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