On the day, customers have sold 10,447 PAYX June 55 calls, with the largest block being just over 9,000 contracts that traded for .60.
Paychex Inc., trading 50.69 (up .70) with an IV30 of 22.48 and an HV10 of 21.80, saw a large call overwriter today.? The stock, with an ADV of 2000 and an OI of 35,600 contracts, saw a customer sell about 10,000 of the June 55 calls at .60 and .65 a contract.? On the day, customers have sold 10,447 of the June 55 calls, with the largest block being just over 9,000 contracts that traded for .60.
This is likely a long customer looking to produce yield against ownership of PAYX.? The customer is hoping PAYX slowly rallies to 55 between now and June and he or she can keep the credit and participate in upside.? Above 55.60 the customer would no longer make money, but that would be a cool 10% in about 4 months.
This trade should be considered bullish the underlying and bearish volatility