Someone with a lot of money to spend has taken a bearish stance on Paychex (NASDAQ:PAYX).

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with PAYX, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 14 options trades for Paychex.

This isn't normal.

The overall sentiment of these big-money traders is split between 35% bullish and 64%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $38,900, and 13, calls, for a total amount of $1,466,010..

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $110.0 to $175.0 for Paychex over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Paychex's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Paychex's whale trades within a strike price range from $110.0 to $175.0 in the last 30 days.

Paychex Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

Where Is Paychex Standing Right Now?

• With a volume of 1,349,584, the price of PAYX is up 0.88% at $138.1.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 85 days.

What The Experts Say On Paychex:

• B of A Securities upgraded its action to Neutral with a price target of $125
• Morgan Stanley has decided to maintain their Equal-Weight rating on Paychex, which currently sits at a price target of $140.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.