Adobe Soars Ahead of Q2 Earnings

Adobe stock just clocked its fifth straight all-time high ahead of the event

Digital Content Manager
Jun 10, 2020 at 3:53 PM
facebook twitter linkedin


Computer software name Adobe Inc (NASDAQ: ADBE) is up 2.8% to trade at $408.15 this afternoon, after clocking its fifth consecutive all-time high of $407.06 earlier today. The positive price action comes just one day ahead of its fiscal second-quarter earnings report, which is due out after the close tomorrow, June 11. 

Adobe stock's impressive climb from its March lows has been enough to convince most members of the brokerage bunch to take a bullish stance. Of the 20 in coverage, 16 say "buy" or better. There's still room for upgrades and/or price-target hikes though. The remaining four still say "hold," plus, the consensus 12-month price target of $352.52 is an 11.09% discount to current levels. 

Similarly, the appetite for calls is unusually high in the options pits. In the last 10 days, 1.58 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 84% of all other readings from the past year, implying a healthier-than-usual appetite for long calls of late. 

A look back at the past eight quarters shows a mixed post-earnings response for ADBE, where the stock closed lower 50% of the time, the day after reporting. The security has averaged a post-earnings swing of 5.6%, regardless of direction. This time around, the options market is pricing in a slightly larger move of 6.8%. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners