Mike Khouw's Clorox (CLX) Trade

On CNBC's Options Action, Mike Khouw said that investors should consider a bearish options strategy in The Clorox Company CLX. He explained that this stock is not a growth story, and it is a little bit expensive compared to its peers. Mike Khouw also said that investors consider CLX as a safe heaven stock, and it hasn't dropped much from its highs this year. It is not very volatile, but this means that the options are relatively cheap. Mike Khouw wants to buy the August 65 puts for $1.25, and his break even for this trade would be at $63.75. The Clorox Company (CLX) fell 0.30% today, and it closed at $67.23.