Clorox Corporation Marches Higher On Takeover Speculation (CLX)
Clorox Corporation (NYSE: CLX) options are active today on chatter of a takeover. CLX shares have been subject to chatter for a few months with nothing materializing. Since the first of the year, Clorox share price has seen a steep rise off the 59 level.
Option traders are buying the March 65 calls. By 1pm est traders bought up around 6k March 65 calls vs an open interest of 1,200 contracts. The April 65 and 70 calls are very active as well, though this call spread was sold, which speculates the (NYSE: CLX) will stay below the 65-70 level.
I feel the play is not to bet on a takeover, but rather a fundamental play based on product demand and strong profits.
52wk Range: 49.32 – 64.90