Prudential (PUK) Plummets 7%: What's Fueling the Sudden Selloff?

Summary
• Prudential (PUK) trades at $29.865, down 7.31% from $32.08
• Intraday low hits $29.46, the lowest since December 2025
• Three-day decline of 9.07% signals a sharp bearish reversal
• Month-to-date drop of 9.87% highlights prolonged weakness

Prudential’s stock has plunged over 7% in a single session, marking its largest intraday decline since April 2025. The selloff follows a three-day losing streak and a 9.87% monthly drop, raising questions about catalysts and technical triggers. With the stock trading near its 52-week low and key support levels under pressure, investors are scrambling to decipher the next move.

Executive Share Purchases Fail to Stem Prolonged Downtrend
Despite recent executive share purchases through Prudential’s All Employee Share Purchase Plan, the stock has continued its freefall. Senior leaders, including the CEO and CFO, acquired small blocks of shares at £11.84 ($14.80) on the London Stock Exchange, but the move failed to stabilize sentiment. The broader context reveals a three-day decline of 9.07% and a 9.87% monthly drop, suggesting deeper structural concerns. The stock’s 52-week low of $17.71 and 52-week high of $34.03 highlight a 44.36% correction from its 2018 peak, indicating a long-term bearish trend exacerbated by recent volatility.

Options Playbook: Capitalizing on PUK’s Volatility
• 200-day MA: $27.17 (below current price)
• RSI: 52.66 (neutral)
• Bollinger Bands: Upper $33.89, Middle $32.46, Lower $31.03
• MACD: 0.35 (bullish divergence), Signal Line 0.51

Prudential’s technicals suggest a bearish near-term outlook despite a long-term bullish bias. Key support levels at $31.03 (lower Bollinger Band) and $24.68 (200D MA) are critical for trend continuation. The stock’s 6.78% intraday drop aligns with its 52-week low, making short-term bearish strategies attractive.

Top Options Contracts:
• PUK20260320C30 (Call): Strike $30, Expiry 2026-03-20, IV 49.27%, Leverage 16.15%, Delta 0.528, Theta -0.0345, Gamma 0.0848, Turnover 185
• PUK20260515C30 (Call): Strike $30, Expiry 2026-05-15, IV 31.02%, Leverage 15.73%, Delta 0.537, Theta -0.0137, Gamma 0.0845, Turnover 190

PUK20260320C30 offers a balanced risk-reward profile with moderate leverage and high gamma, ideal for a 5% downside scenario. If PUK breaks below $31.03, this contract could capitalize on volatility. PUK20260515C30 provides extended exposure with lower IV, suitable for a gradual decline.

Payoff Estimation (5% Downside):
• PUK20260320C30: $29.865 → $28.37 (5% down), Payoff = max(0, $28.37 - $30) = $0 (no profit)
• PUK20260515C30: Same scenario, Payoff = $0.

Aggressive bears should consider PUK20260320P30 (Put) for a 7.31% move below $30. If PUK breaks $31.03, the 200D MA at $27.17 could accelerate the selloff.

Backtest Prudential Stock Performance
The backtest of the performance of PUK (iShares MSCI KLD 400 Social ETF) after a -7% intraday plunge from 2022 to now shows favorable short-to-medium-term gains. The 3-Day win rate is 52.52%, the 10-Day win rate is 52.52%, and the 30-Day win rate is 54.06%. Although the maximum return during the backtest period is only 1.85%, the overall performance indicates a higher probability of positive returns in the short and medium term following the intraday plunge.

Prudential's Freefall: Time to Flee or Fade the Breakdown?
Prudential’s 7.31% plunge underscores a critical juncture for investors. The stock’s 52-week low and 9.87% monthly drop signal a high-risk environment, with key support at $31.03 and $24.68. While the 200D MA at $27.17 offers a long-term floor, short-term volatility remains elevated. MetLife (MET), the sector leader, has also declined 1.89%, reflecting broader insurance sector fragility. Investors should monitor the $31.03 level for a potential rebound or a breakdown into $24.68. Action: Watch for a breakdown below $31.03 or regulatory reaction.