ADP Stock and Options Trade Setup — Automatic Data Processing
Nasdaq 100 · HR Technology & Payroll Processing · Moderate-liquidity options · Large cap · ~$102B
ADP's payroll processing business creates one of the most durable revenue streams in technology — switching costs are extraordinarily high once a company's HR workflows are embedded in the platform. Client retention runs above 90% annually, and revenue grows through price increases, new module attach rates (benefits, time tracking, talent management), and float income on client funds held in trust. With over $30B in client payroll funds generating significant interest income, ADP is a direct beneficiary of higher-for-longer rates. The company consistently beats earnings, pays a growing dividend, and runs a disciplined buyback programme. Its defensive, recurring nature makes it an excellent low-volatility momentum candidate when broader market conditions are supportive.
Score History & Signal Changelog
Preview dataThis page is a living document — updated every 72 hours from the last scan. Each data point below represents one complete algorithmic snapshot.
Signal Breakdown
Today's Trade Card
Options Profile
Risks & Fundamentals
Every setup carries risk. Here's what could move ADP against you, plus the key stats that frame any position.
- 1.Rate cuts compressing float income from client payroll funds, which became material at the $30B+ balance level
- 2.Newer HCM platforms (Workday, Rippling) making inroads in the mid-market at the expense of legacy Workforce Now
- 3.Employment softness in a recession reducing total payrolls processed and new-client additions
ADP Options Setup — Frequently Asked Questions
Is ADP a good options trade today?+
Automatic Data Processing (ADP) currently has an Amora Edge Score of 74/100, ranking it top 16% of today's scan. This composite score is built from four sub-signals — EMA cross, RSI zone, relative strength vs SPY, and volume surge — each scored 0–25. The current read is a bullish setup, so the algorithm is positioned bullish (calls / call debit spreads). A score above 65 typically warrants a trade card with stop and target; below that, the setup is on the watchlist but not actionable.
What is ADP's win rate on Stoptions.ai setups?+
ADP's historical win rate on closed Stoptions setups is 71%. Win rate is calculated as the percentage of past ADP trade cards that hit their target price before stopping out. Win rate is most meaningful once a ticker has 10+ closed trades — individual ticker rates can be noisy at smaller samples. Our portfolio-wide win rate across all closed trades is the more stable benchmark.
What strike and expiry does Stoptions.ai suggest for ADP?+
The strike and expiry are shown on the trade card at the top of this page when the setup is active. Stoptions.ai algorithmically selects strikes targeting delta 0.35–0.45 and expirations 30–45 days out, adjusted for current implied volatility rank (IVR). When IVR is high, the system favors call debit spreads to limit vega risk; when IVR is low, single-leg long calls are preferred. The card includes the contract symbol, mid-price entry, stop, and target.
How often is the ADP setup updated?+
Every 72 hours we refresh ADP's Amora Edge Score and trade card. The underlying scan runs daily at 9:00 AM ET (pre-market) and 9:30 AM ET (post-open), so any new signal change is reflected within one trading session. If ADP drops below the entry threshold or the regime shifts (e.g., SPY enters a confirmed bear), the trade card is replaced with a "no setup" notice automatically.
What does the Amora Edge Score measure for ADP?+
The Amora Edge Score is a 0–100 composite of four technical sub-signals applied to ADP: (1) EMA cross — is the 20-day above the 50-day with both trending up? (2) RSI zone — is momentum in the 50–70 sweet spot, or extended/weak? (3) Relative strength vs SPY — is ADP outperforming the market over 20 sessions? (4) Volume surge — is participation above the 20-day average? Each sub-signal contributes 0–25 points. ADP currently scores 74.
How does ADP compare to other HR Technology & Payroll Processing setups?+
ADP's sector rank and percentile against other HR Technology & Payroll Processing tickers we track is shown on the /tickers index — sortable by Amora Edge Score, win rate, or sector. For direct comparison, see the "Related HR Technology & Payroll Processing Options Setups" panel above. When multiple tickers in the same sector are scoring 80+, the algorithm flags the cluster as a sector rotation signal and may upweight position sizing.
Educational content only — not personalized investment advice. Options carry substantial risk.
Get a Friday recap including setups like ADP.
Every Friday at 4:30 PM ET — trade of the week, signals in motion, sector spotlight, methodology read. 4-minute read. Free.
No spam. One email Friday afternoon. Unsubscribe in one click.