Paychex receives vote of confidence
Chris McKhann | [email protected]
A trader sold 5,000 November 39 puts in one print for $0.65. This is clearly a new position, as previous open interest in the strike was just 311 contracts.
The put seller is betting that PAYX will stay above $39 through expiration in mid-November. The trader is taking on the risk of having to buy shares if they are below that strike price strike. (See our Education section)
PAYX was off just 0.25 percent yesterday to close at $39.56, much less than the broader market's losses on a percentage basis. The payroll-outsourcing company climbed to a five-year high of $41.24 two weeks ago but is now in the middle of its recent range.
About 9,300 total options changed hands in PAYX yesterday, more than triple its daily average for the last month.