DailyPlay – Opening Trade (CLX) – September 17, 2024

CLX Bearish Opening Trade Signal

Investment Rationale

This bearish trade was selected for CLX due to the company’s overbought conditions following the parabolic move to the upside after the strong earnings announcement on August 1st. Additionally, the stock is fundamentally overvalued, trading at a significant premium to its peers despite average growth metrics and weaker margins, which further supports the likelihood of a downturn.

CLX – Daily

Trade Details

Strategy Details

Strategy: Long Put

Direction: Bearish Put

Details: Buy to Open 7 CLX Oct 18 $165 Puts @ $2.98 Debit per share.

Total Risk: This trade has a max risk of $2,086 (7 Contracts x $298) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $298 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bearish trade on a stock that has recently entered overbought territory, which increases the possibility of a selloff in the near future.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 89

Stop Loss: @ $1.49 Credit (50% loss of premium)

View CLX Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View CLX Trade