By Mike Yamamoto of OptionMonster
NEW YORK -- Bullish option traders turned some fast profits in Clorox (CLX) on Monday.
OptionMonster's tracking systems detected heavy buying in the July 95 calls, with the initial blocks pricing for 20 cents. Then everything started moving in a hurry.
Clorox shares were under $90 when the first option trades hit, then quickly rallied and ended the session up 3.53% to $92.66. But that was nothing compared to the calls, which at one point fetched as much as $1.66 -- a gain of more than 700% in less than an hour.Long calls lock in the price where investors can buy shares, letting them cheaply position for a rally. The contracts can also generate significant leverage if shares move in the right direction, which is exactly what happened Monday. The bleach maker fell sharply after reporting earnings on May 1 but held support at its 200-day moving average. Clorox's stock was in the headlines last week for different reasons, in relation to 2011 insider-trading allegations. Overall option volume was fast and furious in the name Monday, coming in at more than 50 times its daily average for the last month. Calls accounted for a bullish 89% of that total. Yamamoto has no positions in CLX.