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Options Traders Pile On Clorox Stock After Upbeat Earnings Report

The company raised its full-year guidance as well

Deputy Editor
Nov 2, 2020 at 10:14 AM
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The shares of Clorox Co (NYSE:CLX) are up 6.3% to trade at $220.31 this morning, after posting fiscal first-quarter earnings and revenue that easily bested analysts' estimates. The company is continuing to brush off the more dire effects of the pandemic, as consumers flock to its cleaning and disinfecting products. Clorox raised its full-year guidance in response.

After hitting an all-time high of $239.87 on Aug. 5, CLX cooled off on the charts and has settled below the $220 mark for much of the last two months. Meanwhile, the equity's 60-day moving average has kept a lid on today's rally, as its done since late August despite provided support earlier in 2020. Longer term, Clorox stock has added 45.9% year-over-year.

Options players have been less optimistic. The security sports a 10-day put/call volume ratio of 1.52 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 92% of readings in its annual range. This suggests a heavier-than-usual appetite for puts of late. 

Today's options pits are flashing ample activity on both sides of the fence. In the first hour of trading, nearly 3,000 calls and just over 1,100 puts have already exchanged hands -- five times the intraday average and volume pacing in the 99th percentile of the past 12 months. Most popular today is the weekly 11/6 220-strike call, followed by the 230-strike call from the same series. Positions are also being opened at the November 255 call.

 

 
 

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