Is the Options Market Predicting a Spike in Paycom Software (PAYC) Stock?

Core Viewpoint - Investors in Paycom Software, Inc. (PAYC) should closely monitor the stock due to significant implied volatility in the options market, particularly for the Jun 21, 2024 $75 Call option [1] Company Analysis - Paycom Software currently holds a Zacks Rank 3 (Hold) in the Internet – Software industry, which is in the top 26% of the Zacks Industry Rank [3] - Over the past 30 days, one analyst has raised the earnings estimate for the current quarter, while five analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $1.66 per share to $1.59 [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Paycom Software shares, indicating potential upcoming events that could lead to a major rally or sell-off [2][4] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]