Adobe Offering Possible 10.13% Return Over the Next 10 Calendar Days

Adobe's most recent trend suggests a bearish bias. One trading opportunity on Adobe is a Bear Call Spread using a strike $57.50 short call and a strike $62.50 long call offers a potential 10.13% return on risk over the next 10 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $57.50 by expiration. The full premium credit of $0.46 would be kept by the premium seller. The risk of $4.54 would be incurred if the stock rose above the $62.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Adobe is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Adobe is bearish.

The RSI indicator is at 36.63 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Adobe

Adobe Creative Cloud dissatisfaction grows with subscribers
Wed, 11 Dec 2013 21:26:00 GMT
Investor's Business Daily – Adobe Creative Cloud dissatisfaction grows with subscribers

Here's What Analysts Expect Adobe To Report Thursday
Wed, 11 Dec 2013 21:04:16 GMT
Seeking Alpha – Adobe Systems ( ADBE ) stock has experienced substantial growth in price this year despite missing analyst forecasts on both EPS and Revenue for FQ3’13 in September. The American multinational software …

Whisper Number: What Will Adobe’s Shares Do Post-Earnings?
Wed, 11 Dec 2013 19:11:05 GMT
Wall St. Cheat Sheet – Adobe Systems has an 84 percent positive surprise history, having topped the whisper in 43 of the 51 earnings reports for which we have data.

Indexes Fall Sharply Despite Budget Deal; Costco Slumps
Wed, 11 Dec 2013 18:30:00 GMT
Investor's Business Daily – Indexes Fall Sharply Despite Budget Deal; Costco Slumps

How to Play Adobe Ahead of Earnings
Wed, 11 Dec 2013 17:20:04 GMT
Bloomberg – Dec. 11 (Bloomberg) — Bay Crest Partners Anshul Agarwal discusses his options play for Adobe on Bloomberg Television's “Market Makers.” (Source: Bloomberg)

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