Markets

Bears look to cash in on drop in Paychex

Paychex has been falling for months, and the bears are looking for an acceleration to the downside.

optionMONSTER's Depth Charge tracking system detected the purchase of about 6,300 January 27.50 puts. Premiums rose from $1.40 to $1.65 as the session progressed and stock worked its way lower.

PAYX fell 3.27 percent to $29.24 yesterday and has lost 10 percent of its value in the last three months. The company, which provides payroll and human-resources services to small businesses, reported better-than-expected earnings and revenue the last time it reported earnings on March 23.

Nonetheless, government reports have portrayed a worsening employment picture since then. Investors may now fear bad news when PAYX's next earnings release comes out after the bell on June 22.

Overall options volume was 8 times greater than average in the session, with puts outnumbering calls by more than 33 to 1.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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