PRU: Look at This Crazy Fucker

Seriously, just look at Prudential’s stock. It doesn’t know which way to go:

The Technical Analysis for PRU

None of the indicators have anything significant here. Significant candlesticks are not present either. Many gaps exist in PRU’s history but not in its present. My technical analysis here is just to use the good ol’ trusty eye: Look at this god damn rollercoaster. It’s either going to go up or down. Nobody knows.

My Prediction for PRU

Here’s my only prediction for PRU: It won’t stay flat.

My Move | PRU Long Strangle

Because I think PRU will either continue shooting up or suddenly down, I will run a long strangle, which means buying out-of-the-money puts and calls. I’ll buy two of each, at the strike prices of 85 and 87.5, respectively. If PRU goes up or down, I stand to gain.

Cost of buying 2 June calls at 87.5: ($180)

Cost of buying 2 June puts at 85: ($220)

Net cost to open the long strangle: ($400)