DailyPlay – Rolling Trade (ADBE) – May 7, 2024

Investment Rationale

With ADBE rallying 6% from its $465 level since we entered the trade, it is time to take profits on our original credit spread and look to roll this up and out to collect more premium. Our immediate upside target is $525 with extended targets of $570. We will look to continue to collect yield on ADBE as our thesis plays out. 

Closing Trade

• ADBE – 69.43% gain: Buy to Close 1 Contract (or 100% of your Contracts) May 31st $465/440 Put Vertical Spread @ $2.36 Debit. DailyPlay Portfolio: By Closing this Contract, we will pay $236. We opened this Contract on April 22 @ $7.72 Credit. The gain, therefore, is $536.

ADBE Bullish Rolling Trade Signal

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 1 Contract June 21st $460/490 Put Vertical Spread @ $11.12 Credit.

Total Risk: This trade has a max risk of $1,888 (1 Contract x $1,888) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $1,888 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is in a mildly bullish trend.

1M/6M Trends: Mildly Bullish/ Bearish

Relative Strength: 2/10

OptionsPlay Score: 91

Stop Loss: @ $22.24 Debit. (100% loss to the value of premium received)

View ADBE Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View ADBE Trade