Bulls See a Payout in Paychex

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Some traders are betting that Paychex will make new highs later this year.

OptionMonster's tracking programs detected heavy buying in the December 37 calls, with more than 2,500 contracts purchased in volume that dwarfed the previous open interest of just 20 contracts. Premiums rose from $1.22 to $1.40, but most of the options priced in the middle of that range.

These calls lock in the price where investors can buy shares in the payroll processor, which is parked at its highest level in almost five years. If it breaks resistance and continues to run, those options stand to generate significant leverage. And if it drops, traders will lose much less money than they would owning shares.

Paychex ended the session at $36.41, up 0.78 percent. Its most recent earnings report beat expectations on the top and bottom lines, and the next one will probably be released in late June, based on last year's calendar.

Total option volume was five times greater than average in the session, with calls dominating the activity.

—By CNBC Contributor David Russell

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David Russell is a reporter and writer for OptionMonster. Russell has no positions in PAYX.