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Investors in Clorox Co (CLX) gained access to new options with a December 19th expiration date today. Notably, a put contract at the $120.00 strike price has a current bid of $3.90, allowing an investor who sells-to-open to potentially acquire shares at a cost basis of $116.10, considering today’s trading price of $120.68.
The put option represents a 1% discount from the current price, with a 55% chance of expiring worthless, equating to a 3.25% return on cash commitment, or 17.69% annualized if it does not get exercised. Conversely, a call contract at the $125.00 strike price bids $2.35, potentially providing a 5.53% return if it is exercised, with a 57% probability of expiring worthless and yielding an additional 1.95% return, or 10.60% annualized.
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