Automatic Data Processing pulled back yesterday, and the bulls stepped in.
OptionMonster's tracking systems detected the purchase of about 3,200 April 62.50 calls for $0.35. Volume was more than 23 times the strike's open interest before the session began, indicating that new money was put to work in the trade.
These calls lock in the price where investors can buy shares, giving them the potential to generate some nice leverage in the event of a rally. But if the stock stays below the $62.50 strike price, they will expire worthless.