Javascript DHTML Drop Down Menu Powered by Drop Down Menu
FullyInformed.com - Options and Stock Strategies For Income

SignUp For Updates 

  You are here:


Bookmark and Share

 

 

 
Trade Anatomy
Charities Are An Industry
Fed Understatement - Defying Logic
A Personal Comment On RIM
Exxon - Patience Is A Strategy
VISA - Risk Against Reward
Microsoft- Reverse Put Ladder
Research In Motion - Not For Investing
Thank You Ben Bernanke
Greek Debt Crisis
Dividend Stocks That Cut Dividends
The Cautious Bull Strategy
Defensive Stock Investing

Spreads VS Selling Puts

Thank You Tax Man
What Next For Research In Motion Stock

Latest Microsoft Stock Report

April Options Results
Comparing The Bear Markets Of 2000 to 2003 and 2007 to 2009
Microsoft Puts Are Better Than Gold
Dance Near The Exit
How I Treat My Investing Like A Business
Microsoft - The Ultimate Utility Stock
The Value Of A Plan
Staying In The Game
It's All About Oil
Market Trend: Still Up - But Watch For June

 

Jul 11 2011 / Stock - Clorox - Symbol CLX

Call Options Go Through The Roof

 
 

Does Someone Know Something We Should All Know?

Obviously something is going to happen with Clorox. The volume of calls has gone through the roof and the stock at one point was up 5.7%. I hate it when one of my stocks has something happening but the news is kept quiet. Only those who need to "know" seem to always be in the "know".

Well, I have enjoyed Clorox for a long time and if by chance it is going to get bought out, which is something I wrote about back in 2009 as Clorox while reasonably large, would be small "potatoes" for a company the size of Proctor and Gamble to pick up. Here's what I did "just in case" there is something happening.

Here is today's action in Clorox. At the time of writing this, 3:15 PM, everyone claims to know nothing about Clorox. Obviously this is not the case.

Clorox Stock - Jul 11 2011

There has never been fairness in stocks and probably never will. It's painfully obvious that something is going on with Clorox. If there is a takeover in the works, then perhaps the SEC will investigate who knew what and when. Personally I doubt the SEC can do anything. They are a body without teeth.

Here are July options that expire at week's end. The $70 and $72.50 are the big numbers. They expire on Friday so honestly, something is underway but only "some" people know about it.

Clorox Stock - July 2011 Options Chain

Here are August's options and these are the ones I decided to do.

Clorox Stock - August 2011 Options Chain

So what is a person to do in an event like this? I Bought 3 August $67.50 calls and I sold 3 August $67.50 puts and bought 4 August $62.50 puts just to hedge.

With volume this enormous, you just have to know that something is going to happen. I decided that I can afford a little excitement on a favorite stock, but only a little.

.

 
 

 
 

Disclaimer: There are considerable risks involved in all investment strategies. Trade at your own risk.
Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed or presented are financial advice, trading advice or recommendations. Fullyinformed.com is a private website. Everything presented and discussed are the author's ideas and opinions only.
By using this site, you agree to be bound by its terms of use. The full terms of use can be read here. If you do not agree to the terms of use, do not use this site. The author of fullyinformed.com assumes no liability for topics and ideas discussed, errors and omissions, ads and their content and external links. Any corporate insignia used are registered trademarks of their respective company or corporation and are being used for identification purposes only. All material copyrighted by FullyInformed.com. Reproduction in whole or in part prohibited. Copyright 2008

 |  site map  |  privacy policy  |  contact me  |  subscribe  |  exchange links  |  the author of fullyinformed  |