Adobe (ADBE) Options Signal Bullish Bias at $360–$365: Here’s How to Play the AI-Driven Rebound

• Options activity shows heavy call open interest at $360 and $365 strikes ahead of Friday’s expiry, suggesting a short-term upside bias.
• Technical indicators hint at a potential bounce off 30D support at $353.70, but long-term bearish trends persist via 200D MA resistance.
• Adobe’s AI-driven growth narrative clashes with a 33% annual decline, creating a high-risk, high-reward setup for traders.

Adobe’s stock is dancing on a tightrope. On one hand, its AI ambitions and strong fundamentals scream "buy," while on the other, a 52-week low and aggressive competition from Google’s tools whisper "sell." But here’s the kicker: options traders are betting big on a rebound. The open interest data for Friday’s expiry shows a call-heavy bias at $360–$365 strikes, and the put/call ratio of 0.802 (calls > puts) confirms it. This isn’t just noise—it’s a signal. Let’s break down what it means for your portfolio.

The OTM Options Playbook: Calls at $360–$365, Puts at $320

The options market isn’t just a numbers game—it’s a psychological one. Right now, 1,909 open interest at the $360 call and 1,838 at $365 (both expiring Friday) scream "institutional attention." These strikes sit just above Adobe’s current price of $354.52, meaning buyers are hedging for a short-term pop. Why those levels? They align with the 30D Bollinger Band upper bound at $364.95, a natural resistance zone. If Adobe cracks $360, those calls could ignite a cascade of profit-taking, pushing the stock toward $365.

But don’t ignore the puts. The $320 put with 2,066 open interest is a bearish red flag. It’s a 10% downside target from current levels, and the sheer volume suggests some big players are bracing for a drop. The put/call ratio isn’t just skewed—it’s a warning sign that volatility is brewing. No block trades in the data means no whale-sized bets to tip the scales, but the OTM distribution alone tells a story: bulls are cautiously optimistic, bears are deeply skeptical.

Adobe’s AI Ambition vs. Market Reality

Adobe’s management is betting big on AI. Their recent Software Bus Tour highlighted "accelerating consumer AI adoption," but enterprise clients are lagging. That’s a problem. While the company’s Creative Cloud and Experience Cloud still drive revenue, Google’s new image-editing tool is eating into Adobe’s market share. The stock’s 33.57% annual drop reflects that tension. Yet here’s the twist: Adobe’s P/E ratio of 15.06 is dirt cheap for a tech stock with AI moats. Analysts are calling it undervalued, but the market isn’t buying it—yet.

This creates a paradox. The options data leans bullish, but the fundamentals are mixed. If Adobe can prove it can dominate the AI space (or at least keep up with Google), the $360–$365 calls could pay off. But if enterprise adoption stalls, the $320 puts might be the safer bet. The key is timing. The stock is currently trading in a short-term bullish trend (Kline pattern) but remains below its 200D MA of $385.65—a long-term bearish signal.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

Let’s get tactical. For options traders, the $360 call (expiring Friday) is a high-probability play. With Adobe at $354.52, a $360 strike gives you a 1.6% buffer to break even. If the stock closes above $360 by Friday, you’re in profit territory. Pair it with the $365 call for a bullish spread: buy the $360 call and sell the $365 call to reduce cost. This limits risk but still captures upside if Adobe surges.

For next Friday’s expiry, the $370 call (OI: 1,993) is a longer-term bet. It’s a 4.4% move from current levels, but Adobe’s 30D MA at $350.07 and RSI at 56.08 suggest it’s not out of the woods yet. If you’re bullish on AI’s long-term impact, this strike gives you time to ride the wave.

On the stock side, consider entry near $353.70 (30D support range: $353.6972–$354.4618). If Adobe holds here, a rebound toward the upper Bollinger Band at $364.95 is possible. Set a stop-loss below $348.11 (200D support) to protect against a breakdown. For the bearish angle, the $320 put is a 10% downside target—use it only if Adobe cracks $348.11 and shows no signs of recovery.

Volatility on the Horizon: Bullish Trends or Bearish Traps?

Adobe’s story is a classic tug-of-war between innovation and execution. The options market is pricing in a short-term rebound, but the 200D MA and long-term bearish MACD (-1.47) suggest caution. If Adobe can surprise to the upside—say, with a major AI partnership or enterprise win—the $360–$365 calls could become gold. But if competition from Google tightens, the $320 put might be the only safe harbor.

The bottom line? This is a high-conviction trade. The data points to a bullish bias in the short term, but the long-term outlook remains murky. For those with a stomach for volatility, the $360 call is a low-risk, high-reward setup. For the more conservative, a bullish spread or a wait-and-see approach near $353.70 makes sense. Either way, Adobe’s AI journey is far from over—and the options market is already betting on the next chapter.