Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 24, 2013  Thu 9:19 AM CT

PAYX: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER