Automatic Data Processing pulled back yesterday, and the bulls
optionMONSTER's Heat Seeker system detected the purchase of about
3,200 April 62.50 calls for $0.35. Volume was more than 23 times
the strike's open interest before the session began, indicating
that new money was put to work in the trade.
lock in the price where investors can buy shares, giving them the
potential to generate some nice leverage in the event of a rally.
But if the stock stays below the $62.50 strike price, they will
expire worthless. (See our
ADP fell 1.54 percent to $60.27 yesterday. The slow-moving payroll
stock has been grinding higher for the last 2-1/2 years, recently
touching its best level since late 2000.
Total option volume was 5 times greater than average in the company
yesterday, with calls accounting for a bullish 80 percent of the
(A version of this post appeared on
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.