Posted 3/12/2024, 6:07:59 PM
Adobe Earnings: Bull Put Spread Options Trade Offers Defined Risk
- Adobe stock tends to stay within the expected range around earnings, allowing a bull put spread trade to profit.
- The options market implies a 7.5% move in either direction for Adobe following earnings.
- A bull put spread can be set up with the short 525 strike and long 520 strike to define risk.
- The maximum risk is $410 and the break-even point is 524.10.
- This is a high-risk, short-term trade suitable only for traders with a high tolerance for risk.
