Paychex (PAYX) Offering Possible 7.53% Return Over the Next 33 Calendar Days

Paychex's most recent trend suggests a bearish bias. One trading opportunity on Paychex is a Bear Call Spread using a strike $41.00 short call and a strike $46.00 long call offers a potential 7.53% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $41.00 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock rose above the $46.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Paychex is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Paychex is bearish.

The RSI indicator is at 27.9 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Paychex

Your first trade for Tuesday
Mon, 14 Apr 2014 17:54:38 GMT

ADP Dips on Dealer Services Spin-Off Plan
Mon, 14 Apr 2014 17:00:05 GMT

Paychex (PAYX) is now in Oversold Territory
Mon, 14 Apr 2014 11:56:35 GMT

ADP to spin dealer services unit
Thu, 10 Apr 2014 19:25:00 GMT

Paycom Software IPO Taps Into HR Management Interest
Wed, 09 Apr 2014 23:11:00 GMT
Investor's Business Daily – Paycom Software is set to make its initial public offering and start trading on Friday, the only IT IPO among the 16 on tap this week, though some biotechs and drugmakers are coming out. Paycom provides …

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