Clorox Stock Enjoys Post-Earnings Pop

The options pits are already brimming with activity

by Lillian Currens

Published on Feb 4, 2020 at 10:28 AM
Updated on Jun 24, 2020 at 10:16 AM

The shares of Clorox Co (NYSE:CLX) are pushing higher this morning, up 5.4% to trade at $164.36, after announcing fiscal second-quarter profits of $1.46 per share and $1.45 billion in sales, beating analysts' estimates. In addition to this, the Burt's Bees parent lifted its full-year profit forecast, citing strengthening demand for its face and lip care items. 

Coming into today, CLX was floating just above the year-to-date breakeven mark, with support emerging at the 40-day moving average. The equity is now trading just below its late-January peak, which was stopped in its tracks by pressure at the $162 region. 

While the brokerage bunch has been quiet today, there could be some upgrades on the horizon, especially considering the seven "hold" ratings and four "strong sell" ratings in place coming in to today. Plus, the consensus 12-month price target of $147 is a 10% discount to current levels. 

The options pits, on the other hand, are already brimming with activity. Already in the first hour of trading 1,243 calls and 344 puts have crossed the tape -- seven times the intraday average. Seeing most of this action is the weekly 2/7 165-strike call, followed by the 160-strike call from the same series. 

This bullish sentiment has been the norm, though. In fact, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) CLX sports a 10-day call/put volume ratio of 2.67. This ratio sits in the 85th percentile of its annual range, too, suggesting a much bigger appetite for long calls of late.

 

 


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