Price Target Alert: Trading the Zacks price target change for PRUDENTIAL
The automated Quantcha Trade Ideas Service has detected a promising
PUK was recently trading at $40.28 and has an implied volatility of 20.32% for this period. Based on an analysis of the options available for PUK expiring on 18-Aug-2017, there is a 24.22% likelihood that the underlying will close within the analyzed range of $44.55-$54.45 at expiration. In this scenario, the average linear return for the trade would be 222.03%.
Price target: Zacks Research has updated their six-month price target for PUK to $49.50. This price target is a consensus price created from the price targets published by 1 participating analysts whose targets ranged from $49.50 to $49.50.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for PUK has been updated to 1.8, which indicates a buy consensus from analysts. Sentiment has moved from 1.80 to 1.80 to 1.80 over the past three months.
Trade approach: The difference between the current price for PUK and the mean price target is $9.22, which represents a 22.89% move (51.89% annualized). Since the 180-day implied volatility for PUK is 25.30%, a bullish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bullish strategy, the trade would be profitable if PRUDENTIAL closed at or above $42.95 on 18-Aug-2017. Based on our analysis, there is a 36.16% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the
This is an automated post generated based on a market analysis of delayed data at 2/17/2017 1:22:53 PM ET. The analysis does not include brokerage fees or commissions and is not investment advice.