Hope Adobe does not dump by more than 5% after earnings. Current price is at $478.
Irrespective of what they do after earnings, your R:R is $810/45500. Even for a 0dte, that's a bad ROI. I hope(not sure) you don't get allocated
Why is 1.8% bad for a day ? Are there more risk free opportunities? I am fine with assignment at 455 if it happens at all.
I don’t get this sort of argument. You’re fine with assignment given what you know today. But you’re trading a single name. The volatility there could leave you holding a huge bag with potentially no prospect of recouping your investment. I kind of get this argument for something like SPY, but it is still suspect. Option selling like this is known for having blown funds up.
I always wonder what is adobe's money making product? Acrobat reader + photoshop cannot be worth this much.
They have firefly
Why not? It’s a subscription service and used worldwide. Also firefly now and no real competition
Imma inverse you so you feel some adversary energy.
IV is at 156%, don't you dare buy a Put expiring tomorrow 😜
It's just you and me buddy.
I can't call, puts yet. Can I buy Adobe now and sell it back if I expect it to go up after earnings?
Umm yea, just don’t do it more than 3 times a week to avoid PDT.
Why can't you sell puts yet ?
How much is the delta on it?
Delta is -0.16 after 3% run up from my entry
That’s called gambling. You’d have had more fun in Vegas for the same risk.
With options trading, you can bet an unlimited amount of money though. Vegas limits you on a single bet so you stay at the casino longer rather than lose all your money on a single bet.
Selling a naked or cash secured put before earnings is not making you unlimited money lol. You’re picking up pennies in front of a steamroller. Best case you keep the premium and possibly miss the rest of a huge upswing, worst case you lose big. And OP isn’t hedging and obviously doesn’t have a solid understanding of the business they are betting on, making it pretty much gambling for chump change with a huge downside. At least in Vegas you get free drinks and comped for placing bets and it’s easy to calculate your risks and what you can lose even if the odds are in the house’s favor.
You mean $8.10?
Multiply by 100
Then you sold puts on $45500 for $810.
Very profitable company with 32% margin and 17 billion revenue in ARR with several growth bets on the horizon. The only risk is if the digital experience bets dont pan out as expected. Digital media business has been very robust. Not a good bet OP especially close to the earnings call. Adobe earnings have generally exceeded guidance.
You are bold to do that in this market
during AI bubble ?
Do they even have any real competition after buying Figma
No, straight to moon
Figma has not been purchased. Sale has not gone through. Intent to purchase is still getting reviewed.