Cramer: Playing the Ultimate Rumor Stock

NEW YORK (Real Money) -- When someone comes in and buys thousands of out-of-the-money calls on Clorox (CLX), both for June and July, with a heavy emphasis on the July 105 calls, what are you going to do, stay short? How can you not take a shot at Clorox, betting that someone knows there is something afoot?

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Clorox, these days, is the quintessential rumored stock. It doesn't have much growth to speak of. It has a bunch of companies that truly don't belong under one roof unless you can figure out how charcoal, kitty litter, Burt's Bees and Hidden Valley salad dressing dovetail with trash bags, bleach and other cleaning supplies. I know I have never been able to figure it out.

But I know this. In a world where a bunch of second-rate brands under the Hillshire Brands (HSH) roof turned out to be worth almost double the price they were not that long ago, how can a Unilever (UN) not take a hard look at the company? (Procter (PG) tried to merge with it once before and it was rejected.)

Who is to think that it doesn't make sense for Clorox to go more food and merge with Pinnacle (PF)? Or how about it goes food and nonfood with Pinnacle handling the condiments portion of Newco.

So many ways to skin the cat with Clorox.

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