PAYX Options Analysis: $105 Put Contract Shows Significant Appeal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $105 put option is $1.45, and if an investor sells to open this contract, they would effectively purchase shares at a cost basis of $103.55, representing a 5% discount to the current price of $111.07, making it attractive for those interested in PAYX stock.
- Expiration Risk Analysis: Current data suggests a 74% chance that the put option will expire worthless, and if it does, the premium would yield a 1.38% return on cash commitment, equating to an annualized return of 13.26%, highlighting the potential profitability of this contract.
- Call Option Returns: The $120 call option has a current bid of $0.60, and if an investor buys PAYX shares at $111.07 and sells this call, they could achieve an 8.58% total return if the stock is called away at expiration, showcasing the potential upside of this strategy.
- Expiration Probability: Current data indicates an 81% chance that the call option will expire worthless, allowing investors to retain both their shares and the premium collected, which would represent a 0.54% additional return, or 5.19% annualized, further enhancing the attractiveness of this investment strategy.
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Analyst Views on PAYX
Wall Street analysts forecast PAYX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYX is 120.55 USD with a low forecast of 110.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
0 Buy
10 Hold
2 Sell
Hold
Current: 102.450
Low
110.00
Averages
120.55
High
126.00
Current: 102.450
Low
110.00
Averages
120.55
High
126.00
About PAYX
Paychex, Inc. is a human capital management (HCM) company. The Company is engaged in delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. It is a provider of integrated HCM solutions for human resources (HR), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (U.S.) and parts of Europe. It supports its small-business clients by utilizing its proprietary, software as a service (SaaS) Paychex Flex platform and the Company’s SurePayroll SaaS-based solutions. Its HR solutions include HR packages, HR consulting, employee onboarding, hiring services, and artificial intelligence -assisted recruiting. Its payroll services include payroll packages, small business payroll, midsize to enterprise payroll, switch payroll companies, and payroll tax services. Its employee benefits services include Group health insurance, retirement services, and benefits administration services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Price Volatility Analysis: The 52-week low for PAYX is $106.47 per share, with a high of $161.24, and the latest trade at $107.18 indicates the stock is hovering near its low, potentially affecting investor confidence.
- Market Performance Overview: In Monday trading, Paychex Inc shares are down about 0.5%, reflecting a cautious market sentiment regarding its short-term performance, which may influence future investment decisions.
- Technical Indicator Reference: The comparison of PAYX's stock performance against its 200-day moving average provides a technical analysis perspective, assisting investors in evaluating long-term trends and potential investment opportunities.
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- Audit Committee Role: Hansen has been appointed to the Board's Audit Committee, where his extensive auditing experience will enhance the company's financial transparency and compliance.
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