Quantchabot has detected a new Bear Call Spread trade opportunity for ADOBE INC (ADBE) for the 28-Feb-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ADBE was recently trading at $417.79 and has an implied volatility of 26.47% for this period. Based on an analysis of the options available for ADBE expiring on 28-Feb-2025, there is a 34.19% likelihood that the underlying will close within the analyzed range of $380.59-$420.48 at expiration. In this scenario, the average linear return for the trade would be 50.83%.
52 week low: ADOBE INC recently reached a new 52-week low at $415.51. ADBE had traded in the range $425.32-$638.25 over the past year.
Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if ADBE maintains its current direction and does not revert back to pricing on the bullish side of $417.79 on 28-Feb-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bearish strategy, the trade would be profitable if ADOBE INC closes at or below $420.50 on 28-Feb-2025. Based on our risk-neutral analysis, there is a 50.03% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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