The Clorox Company (CLX) has made headlines recently as part of an insider trading investigation focusing on Phil Mickelson, Carl Icahn, and gambler William Walters. CLX stock wouldn’t be considered to be a traditional favorite of traders – a low volatility name, it has more of a place in mom and pop’s portfolio than in most trading portfolios.
CLX shares are up just over 1.5% in 2014 and have traded in a relatively wide 52-week range of $80.20-$96.76. The stock has slightly underperformed the S&P 500 for the past 10 years, but is attractive to investors given its high dividend yield and attractive PE ratio.
On Monday, we saw several blocks of CLX calls come across our the tape (via Trade-Alert). The largest was a block of 2,944 CLX Jul 95 Calls bought for $0.20. With the potential to control almost 300,000 shares, this order wasn’t a huge bet from a monetary standpoint (less than $60k). Nonetheless, CLX shares rallied over 3% following this options order, and several more in the same line would later come through. These calls would eventually trade has high as $1.50, demonstrating once again why it pays to watch unusual options activity (UOA).
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KeeneOnTheMarket.com is beta testing our own UOA scanner Option Hacker, developed with Trade-Alert LLC using our proprietary filters.
