Signal Says Clorox Stock Could Cool Off Soon

The stock rallied 20% in the last 30 days

Deputy Editor
Jul 18, 2022 at 1:12 PM
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The shares of Clorox Co (NYSE:CLX) were last seen down 1.5% to trade at $146.49. Prior to today though, the shares we're in the midst of a nifty bounce off its June 16 two-year lows of $120.50. However, CLX's 19.8% gain in the last 30 days has run the stock up to a historically bearish trendline that, if past is precedent, could send it lower once again.

Clorox stock has rallied right into its 140-day moving average, which has pressured the shares lower in the past. According to Schaeffer's Senior Quantitative Analyst Rocky White's latest study, the security has seen seven similar signals over the past three years, and was lower one month later 67% of the time, averaging a 5.8% loss for that period. A comparable move from the stock's current perch would place it just below $138. Not a sharp drop necessarily, just cold water on the red hot household goods stock.

CLX Chart July 18

Even amid its 30-day tear up the charts, short-term options traders remain bearish on Clorox stock, per its Schaeffer's put/call open interest ratio (SOIR) of 1.38 that ranks in the elevated 82nd percentile of annual readings. 

Options look like the ideal avenue to pursue for those looking to speculate on CLX, as its Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 74 out of 100. This means the shares have exceeded option traders' volatility expectations during the past year.


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