CLX Cash-Secured Put Strategy
CLX (The Clorox Company), in the Consumer Defensive sector, (Household & Personal Products industry), listed on NYSE.
The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States. The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States. The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands.
CLX (The Clorox Company) trades in the Consumer Defensive sector, specifically Household & Personal Products, with a market capitalization of approximately $11.12B, a trailing P/E of 14.77, a beta of 0.58 versus the broader market, a 52-week range of 84.7-136.69, average daily share volume of 2.6M, a public-listing history dating back to 1983, approximately 7K full-time employees. These structural characteristics shape how CLX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates CLX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CLX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on CLX?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current CLX snapshot
As of May 14, 2026, spot at $91.25, ATM IV 31.80%, IV rank 55.47%, expected move 9.12%. The cash-secured put on CLX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this cash-secured put structure on CLX specifically: CLX IV at 31.80% is mid-range versus its 1-year history, so the credit collected on a CLX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.12% (roughly $8.32 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CLX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLX should anchor to the underlying notional of $91.25 per share and to the trader's directional view on CLX stock.
CLX cash-secured put setup
The CLX cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CLX near $91.25, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLX chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CLX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $85.00 | $1.15 |
CLX cash-secured put risk and reward
- Net Premium / Debit
- +$115.00
- Max Profit (per contract)
- $115.00
- Max Loss (per contract)
- -$8,384.00
- Breakeven(s)
- $83.85
- Risk / Reward Ratio
- 0.014
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CLX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CLX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$8,384.00 |
| $20.18 | -77.9% | -$6,366.52 |
| $40.36 | -55.8% | -$4,349.05 |
| $60.53 | -33.7% | -$2,331.57 |
| $80.71 | -11.6% | -$314.09 |
| $100.88 | +10.6% | +$115.00 |
| $121.06 | +32.7% | +$115.00 |
| $141.23 | +54.8% | +$115.00 |
| $161.41 | +76.9% | +$115.00 |
| $181.58 | +99.0% | +$115.00 |
When traders use cash-secured put on CLX
Cash-secured puts on CLX earn premium while a trader waits to acquire CLX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CLX.
CLX thesis for this cash-secured put
The market-implied 1-standard-deviation range for CLX extends from approximately $82.93 on the downside to $99.57 on the upside. A CLX cash-secured put lets a trader earn premium while waiting to acquire CLX at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current CLX IV rank near 55.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on CLX should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, CLX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLX-specific events.
CLX cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CLX positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CLX alongside the broader basket even when CLX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CLX carry tail risk when realized volatility exceeds the implied move; review historical CLX earnings reactions and macro stress periods before sizing. Always rebuild the position from current CLX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CLX?
- A cash-secured put on CLX is the cash-secured put strategy applied to CLX (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With CLX stock trading near $91.25, the strikes shown on this page are snapped to the nearest listed CLX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CLX cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the CLX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$8,384.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CLX cash-secured put?
- The breakeven for the CLX cash-secured put priced on this page is roughly $83.85 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CLX market-implied 1-standard-deviation expected move is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on CLX?
- Cash-secured puts on CLX earn premium while a trader waits to acquire CLX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CLX.
- How does current CLX implied volatility affect this cash-secured put?
- CLX ATM IV is at 31.80% with IV rank near 55.47%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.