By Jon "DRJ" Najarian, co-founder of OptionMonster

Options action was 19 times above average in Clorox ( CLX) on Wednesday as traders speculated on a takeover of the bleach maker.

OptionMonster's tracking systems show that volume surged to 7,582 in the August 65 calls and to 3,737 in the September 65 calls, compared with existing open interest of a single contract between the two strikes. The August 65 calls traded for 10 cents to 25 cents, while the September 65 strikes changed hands for 20 cents to 45 cents.

Clorox rose almost 1% to $59.30 on Wednesday, trading as high as $59.81 at the peak of the options frenzy. The stock, at its highest prices since late November, would have to climb another 10% by expiration for the calls to turn a profit.

The next confirmed catalyst for the stock is on Aug. 3, when Clorox reports fiscal fourth-quarter earnings.

Money also flowed into the August 60 calls, which traded 3,966 times for 75 cents to $1.40. Volume was more than twice existing open interest.

Purchasing dominated trading in all three strikes, causing calls to outnumber puts by 18 to one.
At the time of publication, Najarian had no positions in the stocks mentioned.