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November 30, 2016  Wed 11:30 AM CT

Prudential Financial has been ripping higher with the rest of the sector, but a large investor apparently believes that further gains will be limited.

OptionMonster's monitoring programs show that 7,200 January 110 calls were sold mostly for $0.61 at the same time today. Volume was more than 12 times the open interest in the strike, which indicates that new money was put to work.

Short calls generate income and lock in the price where a stock must be sold. The trade is usually done in conjunction with long shares in a covered-call strategy, reflecting a belief that upside potential will be limited through expiration. (See our Education section)

PRU is up 1.21 percent to $100.98 in afternoon trading and is up 25 percent in the last three months. The insurance firm reported bullish results on Nov. 2 and is scheduled to announce its next earnings numbers after the close on Feb. 8.

Overall option volume is about average in PRU so far today.

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