Somebody is bearish toward Clorox.
optionMONSTER's Depth Charge tracking system detected the purchase
of 7,806 October 62.50 puts for an average premium of $0.575. An
equal number of October 67.50 calls was sold for $3.70. Volume was
more than 8 times open interest in both strikes.
The trade resulted in a credit of $3.125 and was probably the work
of an investor who owns shares in the consumer-products company.
They ended Friday up 1.11 percent to $69.47 on Friday, meaning that
the calls sold were in the money.
As a result, the trader is willing to accept a maximum of $70.625
if CLX closes at or above $67.50. Below that level, the sale price
will fall to $62.50, where the puts kick in. But including the
credit earned, the position is guaranteed to get a minimum $65.625.
The stock swung wildly in the last three months, driven higher by a
takeover offer from Carl Icahn in July and then lower by the
early-August market selloff.
Overall option volume in CLX was 10 times greater than average.
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