Volume Spike Investor

Paychex Inc. (NASDAQ: PAYX) is seeing bullish action following 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 term players are buying the August $27.50 and $30 calls, while the longer term bets are in the December $30 calls where 10,000 calls were just bought.  A trend 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 level and neckline of an inverse head and shoulders.

-JOE KUNKLE, OptionsHawk.com

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