To receive further updates on this Clorox Co (NYSE:CLX) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today. 

The market is fairly bullish, but that bullishness is actually a good signal for a downside trade on Clorox Co (NYSE:CLX). Consumer products/staples have been struggling with shrinking margins, and falling dividend values (relative to interest rates) and we think CLX is poorly positioned to defend against sellers.

The stock has triggered a long-term head and shoulders pattern that has been threatening a big breakout for a few days. Negative momentum at an otherwise positive time is a good sign that the stock is intrinsically weak and should help hedge against any short-term shocks after the recent run in the S&P.

‘Buy to open’ the CLX November 125 Puts (CLX171117P00125000) for a maximum price of $2.30.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

Most recently, John and Wade are co-options strategists of Turbo Trader Live — a live, interactive trading room service that runs two hours every trading day the market is open. Turbo Trader Live focuses on long call and put options, as well as long and short vertical spread strategies. Find out how to get in on the live trading action and start making real profits by clicking here.