Kimberly-Clark Shares: What Options Say

Options traders are bidding up calls in Kimberly-Clark after Merrill Lynch upgraded the consumer product company Friday morning.

The average daily turnover of calls in KMB is 1,200 contracts, but some 4,000 changed hands in the first 90 minutes of today's session alone. That included 3,300 of the April 55 calls (KMBDK) against open interest of just 1,310 contracts, according to OptionMonster's tracking systems.

There is no volume in expiring January calls, so this is not a roll from January to April.

Merrill's upgrade represents a shift in its stance on consumer product businesses. Kimberly-Clark is clearly one of those defensive, less levered stocks that made it attractive.


I have no positions in KMB.

The Other Consumer-Staples Companies:

Johnson & Johnson




Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of