CL LONGNice breakout here on Colgate-Palmolive (NYSE:CL) with solid momentum in this low-resistance liquidity run. Saw an article highlighting the implied volatility spike, which caught my attention. Normally, I stay away from options chains on stocks like this, but with the volatility surge, I think we could see $100-$104 in the next 2 months.
Despite a mixed Q3 2024 report, Colgate still managed to exceed top-line expectations, with a 2.4% revenue increase and a strong 6.8% organic sales growth. The company also delivered positive volume growth across every operating division for the second straight quarter.
The implied volatility on the February 2025 $50 calls is particularly interesting, indicating traders are expecting a big move in either direction. I favor the upside based on technicals.
Even though Colgate holds a Zack's Rank #3 (Hold) in the consumer staples sector, the fundamentals still show promise, and options traders are pricing in something significant.
