Mike Khouw's The Clorox Company (CLX) Trade

CNBC Options Action's Mike Khouw suggested on the show that investors should buy protection in The Clorox Company CLX. Specifically, he wants to sell the July 62.50 put in Clorox (CLX) for $0.40, and buy the July 67.50 put for $1.40. He also wants to sell the July 72.50 call for $1.00. You wouldn't have to lay out any money for this trade, and you would have a protection from $67.50 to $62.50. Mike Khouw added that $62 is as low as this stock has been. This is not a volatile stock, and your put spread doesn't have to be very wide. The Clorox Company (CLX) gained 0.75% today, and closed at $69.94.