Paycom Software Inc (NYSE:PAYC) has been an incredibly strong stock in the last month, and Wall Street has been waiting for a pullback as an opportunity to get in on the action. I think now is the time.
PAYC is trending above the 13/30 and 200 hourly MA, and is flirting with the breakout line around $264.
You can see what I mean on the hourly chart:
Ever since the hourly crossover last week, PAYC has been slowly grinding higher, and I think we’re just in time to catch the breakout move. I think it could squeeze soon and make a run into $270’s.
I am going to go with PAYC Jan 17 2020 270 Call @ $5.00. I will stop out if PAYC breaks the 200-MA support level around $257, and I will take profits if we catch a move into the 270’s. Asl long as PAYC holds above support, I would be willing to add to the trade.