Earning Plays

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ADP Profit Rises, Beating Estimates
Automatic Data Processing Inc. (ADP) opened at 48.62. So far today, the stock has hit a low of 47.92 and a high of 49.65. ADP is now trading at 49.56, up 2.38 (5.04%). The stock hit its 52 week high of 51.50 in February and set its 52 week low of 43.89 in April. ADP has been very steady for the past year. Automatic Data Processing reported this morning its first-quarter profit rose to $297.4 million, helped by increased employer and dealer services revenue. The company posted earnings of 45 cents per share on revenue of $1.99 billion, while analysts expected earnings of 43 cents per share on $1.97 billion in revenue. Technical indicators for the stock are neutral but deteriorating while S&P gives ADP a very positive 5 STARS (out of 5) strong buy rating. If you’re looking for a hedged trade on this stock, consider a December bull put credit spread below the $45 level. ADP stock could fall up to 9.2% before expiration and this position would still profitable
http://www.marketintelligencecenter.com/articles/463064