OptionsHouse

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


Related Stories

PAYX

Large trade bets on Paychex ceiling

July 1, 2016

The payroll-services company rallied yesterday on bullish quarterly results, but a large trade is betting that further gains will be limited.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Know thyself before trading

All too often people jump into market without considering some basic guidelines that have as much to do about themselves...

View more education articles »