Options Brief: Prudential Financial (PRU)

PRU – Prudential Financial, Inc. – Bullish options action on the insurance company this morning indicates one optimistic player is positioning for continued upward movement in the price of the underlying shares through June expiration. Prudential’s shares are up 1.95% at $56.77 as of 11:05 am (ET). The investor purchased a debit call spread, buying 5,000 calls at the June $60 strike for a premium of $1.15 each, and selling the same number of calls at the higher June $65 strike for an average premium of $0.21 apiece. Net premium paid for the spread amounts to $0.94 per contract. The options strategist stands prepared to amass maximum potential profits of $4.06 per contract should Prudential’s shares surge 14.5% over the current price to surpass $65.00 by expiration day. The investor starts to make money only if the price of the underlying stock exceeds the breakeven point at $60.94 by June expiration.