Adobe Stock Upgraded on Beat-and-Raise

Options volume is running at 18 times the intraday average amount

Digital Content Manager
Jun 14, 2024 at 10:33 AM
facebook X logo linkedin

Adobe Inc (NASDAQ:ADBE) reported fiscal second-quarter earnings and revenue that beat expectations. The company also raised its annual revenue forecast thanks to strong demand for its artificial intelligence (AI) editing tools. At last glance, ADBE is up 14.7% to trade at $525.96.

In response, J.P. Morgan Securities upgraded the security to "overweight" from "neutral," and raised its price objective to $580 and $570. Six other analysts lifted their price targets as well. Coming into today, 23 of 32 firms in coverage called ADBE a "buy" or better, while the 12-month consensus target price of $615.99 is a 16.1% premium to current levels.

Shares are trading at their highest level since March, and on track for their biggest single-day percentage gain since March 2020. The equity is also eyeing its first close above the 60-day moving average since February, but remains down roughly 12% so far in 2024. 

Options volume is today running at 18 times the intraday average amount, with 47,000 calls and 35,000 puts exchanged so far. The most popular contract is the weekly 6/14 550-strike call, where new positions are being bought to open. This means traders expect additional upside for ADBE before today's close.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!