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