Paycom Software presents a compelling cash-secured put opportunity at $125, sitting roughly $12 below current levels and well beneath the $151 analyst target. The trade offers $356 in premium for taking on assignment risk at a 15.8x P/E multiple — reasonable for a software company pulling 22.4% profit margins.
The technical setup adds conviction. PAYC has bounced 8% off its 50-day moving average at $126.31, suggesting institutional support near our strike zone. The 200-day MA sits at $168, indicating the stock has been under pressure but may be finding a floor. With implied volatility at 49.5% — elevated for a mature software play with 0.78 beta — we're collecting meaningful premium for the risk.
Q1 earnings delivered upside surprises on both revenue and profit, reinforcing the fundamental thesis. Human capital management software isn't going anywhere, and Paycom's established market position provides defensive characteristics in uncertain times. The company's consistent execution and healthy margins create a margin of safety even if broader tech sentiment remains choppy.
At a -0.251 delta, this put gives us roughly 25% assignment probability while generating annualized returns in the double digits. The 38-day expiration keeps time decay working in our favor without excessive calendar risk.
Watch for any shifts in enterprise software spending sentiment and PAYC's ability to maintain margin expansion as the primary variables that could impact this trade's trajectory.
Today's Atlas Trades
GEHC — Short Put
- Strike: $60.0
- Expiration: 2026-06-05
- Premium: $1.85
- Stock Price: $63.47
- IV: 52.2%
- Delta: -0.309
- DTE: 25
MEC — Short Put
- Strike: $25.0
- Expiration: 2026-06-18
- Premium: $0.76
- Stock Price: $27.20
- IV: 49.5%
- Delta: -0.264
- DTE: 38
AERO — Short Put
- Strike: $15.0
- Expiration: 2026-06-18
- Premium: $0.45
- Stock Price: $16.31
- IV: 49.0%
- Delta: -0.264
- DTE: 38
WBI — Short Put
- Strike: $25.0
- Expiration: 2026-06-18
- Premium: $0.76
- Stock Price: $27.35
- IV: 51.0%
- Delta: -0.257
- DTE: 38
OR — Short Put
- Strike: $35.0
- Expiration: 2026-06-18
- Premium: $1.02
- Stock Price: $38.42
- IV: 50.6%
- Delta: -0.249
- DTE: 38
PAYC — Short Put
- Strike: $125.0
- Expiration: 2026-06-18
- Premium: $3.56
- Stock Price: $136.87
- IV: 49.5%
- Delta: -0.251
- DTE: 38
WT — Short Put
- Strike: $17.5
- Expiration: 2026-06-18
- Premium: $0.55
- Stock Price: $19.10
- IV: 51.3%
- Delta: -0.263
- DTE: 38
PESI — Short Put
- Strike: $10.0
- Expiration: 2026-06-18
- Premium: $0.28
- Stock Price: $11.00
- IV: 49.9%
- Delta: -0.243
- DTE: 38
NXE — Short Put
- Strike: $11.0
- Expiration: 2026-06-18
- Premium: $0.32
- Stock Price: $12.14
- IV: 51.6%
- Delta: -0.242
- DTE: 38
ESE — Short Put
- Strike: $280.0
- Expiration: 2026-06-18
- Premium: $8.22
- Stock Price: $303.11
- IV: 47.5%
- Delta: -0.268
- DTE: 38
NVST — Short Put
- Strike: $22.5
- Expiration: 2026-06-18
- Premium: $0.67
- Stock Price: $24.24
- IV: 46.7%
- Delta: -0.276
- DTE: 38