A large put trade tops today's option activity in Paychex, but it's not bearish.
The option volume in PAYX already tops 12,000 contracts this morning, which is more than 10 times its daily average in the last month. Almost all of that volume is in a February put spread.
A trader bought the February 31 puts for the ask price of $0.15 and sold the February 32 puts for the bid price of $0.30. The total volume at each strike exceeded 5,000 contracts, more than 5 times the previous open interest and therefore new positioning.
This credit spread takes in $0.15, which will be the profit if PAYX is above $32 at expiration. (See our Education section)
Shares of the payroll-outsourcing service are down 0.34 percent to $32.17. The stock was below $31 into the end of 2012 but up at resistance at $34 just two weeks earlier.
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Buyers seek big payday in Paychex
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The payroll processor's most recent earnings report beat expectations on the top and bottom lines, and some traders are betting that the stock will make new highs later this year.
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