Friday, August 7, 2009

Elevated Options Activity in Paychex (PAYX)

Paychex Inc. (NASDAQ: PAYX) is seeing bullish state mass an improving employment report, with the thesis being that the outsourcing firm will see an uptick in earnings with more jobs being offered in Q3 and Q4.  Near constituent players are buying the August $27.50 and $30 calls, while the longer constituent bets are in the Dec $30 calls where 10,000 calls were just bought.  A way line off recent tops in shares from all time highs of $42 in 2007 has shares nearing a breakout here, with $28.50 the next key breakout level, the 38.2% Fib take and neckline of an oppositeness head and shoulders.

-JOE KUNKLE, OptionsHawk.com

UPDATE: The stock has also just crossed the 4.1 meg average shares per day mark above 4.1 meg shares with a 5.8% gain to $27.74 as of 2:28 PM EST.


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