Kevin Kelly's Clorox Trade

Kevin Kelly of Recon Capital Partners suggested on Bloomberg Markets a bullish options strategy in Clorox Co CLX.

He thinks it's the best to pick defensive names in the current market environment and he sees Clorox as a right stock to buy, because it has a nice dividend yield and it is still making acquisitions, which helps it to grow earnings. The stock has also outperformed the market recently.

Kelly wants to buy in the money call in Clorox. Specifically, he wants to buy the October 120 call for $5.50. The trade breaks even at $125.50 or 1.67 percent higher from the closing price on Tuesday.