Dan Deming's ADBE Example Trade

Why It Matters

The CEO transition and downward analyst revisions heighten downside risk and volatility for a major software bellwether, while Deming’s options setup shows a way for traders to construct a defined-risk bullish play if support holds. Broader dollar and interest-rate dynamics could amplify sector and market pressure, affecting sentiment for tech and cyclicals.

Summary

Adobe shares plunged after Thursday’s earnings and CEO Shantanu Narayen’s surprise departure, trading near seven-year lows and off about 6.5% in the session. Analysts reacted by trimming targets and ratings—Barclays downgraded to equal-weight with a $275 target, Wells Fargo cut its target to $330 (from $405), while BMO and UBS sit around $285–$290. JM Financial’s Dan Deming outlined an example options trade: sell an April 15 put spread around the 245/215 area and buy a 270 call while the stock trades near $252, a structure that can be entered for a slight credit to get long just below support and capture upside above 270. He also flagged broader market risks, citing a firmer dollar, moves in short-term rates, and the S&P 6700 technical pivot as things to watch next week.

Original Description

Dan Deming and Sam Vadas react to the latest earnings move from Adobe (ADBE) as shares fall to a near 7-year low. Dan wonders if the selling pressure is a "canary in the coal mine" for the overall AI trade. He demonstrates an example options strategy for ADBE before providing his takeaways on this week's tumultuous trading environment with back-and-forth swings in the energy space.

======== Schwab Network ========

Empowering every investor and trader, every market day.

Options involve risks and are not suitable for all investors. Before trading, read the Options Disclosure Document. http://bit.ly/2v9tH6D

Subscribe to the Market Minute newsletter - https://schwabnetwork.com/subscribe

Download the iOS app - https://apps.apple.com/us/app/schwab-network/id1460719185

Download the Amazon Fire Tv App - https://www.amazon.com/TD-Ameritrade-Network/dp/B07KRD76C7

Watch on Sling - https://watch.sling.com/1/asset/191928615bd8d47686f94682aefaa007/watch

Watch on Vizio - https://www.vizio.com/en/watchfreeplus-explore

Watch on DistroTV - https://www.distro.tv/live/schwab-network/

Follow us on X – https://twitter.com/schwabnetwork

Follow us on Facebook – https://www.facebook.com/schwabnetwork

Follow us on LinkedIn - https://www.linkedin.com/company/schwab-network/

About Schwab Network - https://schwabnetwork.com/about

#adobe #adbe #trade #options #trading #optionstrading #example #software #ai #adobephotoshop #adobeillustrator #adobepremierepro #markets #stocks #stockmarket #marketnews #schwabnetwork