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September 23, 2016  Fri 10:34 AM CT

CL : SEE CHART GET CHAIN FIND STRATEGIES

Traders are positioning for a possible drop in Colgate-Palmolive by Thanksgiving.

optionMONSTER's monitoring program shows that about 3,000 November 72.50 puts were purchased for $1.43 to $1.51 today. Volume was well above the strike's open interest of 1,922 contracts, indicating that new positions were established.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

CL is down 0.46 percent to $73.19 in morning trading but is up 2 percent in the last week. The consumer-products company is scheduled to report earnings in pre-market hours on Oct. 27.

Overall option volume are about average in CL so far today, but puts outnumbered calls by a bearish 3-to-1 ratio.

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