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ONN.tv reviews Cramer’s take on CL and how bulls and bears performed in Options Land
Related Symbols: CL
The Pick – Colgate Palmolive (NYSE: CL):
On Nov. 11, Mad Money host Jim Cramer said he is bullish on Colgate-Palmolive (NYSE: CL). CL shares were priced at $84 at the time of this episode, up from $81.72 at the time of Cramer’s recommendation in November.
Bullish Option Trade for CL:
Bullish investors sold December 80 puts for $1.35 and bought December 75 puts for 40 cents. Investors collected 95 cents per spread, which expired with the stock at $82.16. This trade was a winner of 95 cents with the stock up $2.28.
Bearish Option Trade for CL::
Bearish investors sold December 85 calls for 70 cents and bought December 90 calls for 15 cents. This means investors collected 55 cents, and the spread expired with the stock at $82.16. This trade was a winner of 55 cents, with the stock up $2.28.
Winner, winner, chicken dinner!
Keep in mind that investors who traded these option plays were subject to commissions that affected overall gains and losses.
By opening a free virtual trading account, you can build a profit/loss diagram to help visualize this trade.
For more trading ideas and breaking news on the options market, stay tuned in to The Options News Network.
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