Adobe (ADBE) Options Signal Bullish Bias: Calls at $350–$400 Dominate as AI News Fuels Upside Potential

• Adobe’s stock (ADBE) is trading at $342.69, up 1.43% intraday, with a short-term bearish Kline pattern but strong call options activity at key strikes.
• Options data shows heavy call open interest at $350, $400, and $370 (expiring this Friday), while puts dominate at $335 and $340, signaling a cautious bullish bias.
• Recent AI-driven product launches and strategic partnerships (e.g., Firefly Image Model 5, GenStudio) are amplifying investor optimism, but technical indicators hint at near-term volatility.

The stock is showing clear upside potential, but traders must watch support levels and options expiration dynamics.Bullish Sentiment in Options: Calls at $350–$400 Outpace Puts at $335–$340

Let’s start with the options chain. This Friday’s top OTM calls are clustered at $350 (OI: 2,488), $400 (OI: 1,779), and $370 (OI: 1,771), while puts peak at $335 (OI: 1,406) and $340 (OI: 1,279). The put/call ratio for open interest is 0.809, meaning calls outweigh puts by a 21% margin. This isn’t just noise—it’s a signal. Traders are betting on a rebound above $345.85 (middle Bollinger Band) and a test of the 30D resistance at $353.69–$354.46. But here’s the catch: if the stock dips below $330 (lower Bollinger Band), the puts at $335 and $340 could trigger a short-term selloff. The 200D moving average at $384.41 is still a distant target, but the near-term focus is on $350 as a psychological hurdle.

AI News Reinforces Bullish Narrative, But Risks Lurk

Adobe’s recent AI announcements—like Firefly Image Model 5, Firefly Foundry, and Project Moonlight—aren’t just buzzwords. They’re concrete steps to monetize generative AI in creative and enterprise markets. The partnership with WEBJUMP and integrations with Google, OpenAI, and Runway signal Adobe’s intent to dominate AI-driven workflows. But here’s the rub: the selfie camera issue in Project Indigo for iPhone 17 users is a minor red flag. It’s not a catastrophe, but it does highlight technical hiccups that could delay adoption. Still, the broader narrative is strong. Investors are buying into Adobe’s AI-first strategy, and that’s reflected in the options data. The question isn’t whether Adobe can innovate—it’s whether the market will sustain the momentum.

Actionable Trade Ideas: Calls at $350 and $390, Stock Entry Near $342.69

For options traders, the $350 call (expiring this Friday) is a high-probability play. With 2,488 contracts in open interest, it’s the most liquid strike. If Adobe closes above $350 by Friday, the reward-to-risk ratio is favorable. For a longer-term bet, the $390 call (OI: 1,921) next Friday offers leverage if the stock breaks out of its 30D resistance. For stock traders, consider entering near $342.69 (current price) with a target at $354.46 (30D resistance). A stop-loss at $330 (lower Bollinger Band) would protect against a breakdown. If Adobe’s AI news gains traction, the 200D moving average at $384.41 could become a new focal point by year-end.

Volatility on the Horizon: Navigating Adobe’s AI-Driven Momentum

Adobe’s options activity and news flow paint a clear picture: the market is pricing in a bullish bias, but technical indicators like the bearish Kline pattern and RSI at 44.19 suggest caution. The key is to balance optimism with discipline. If the stock holds above $333.1 (intraday low), the $350 call options could act as a catalyst for a rally. But if it slips below $330, the puts at $335 and $340 might force a reevaluation. The AI-driven product pipeline is a tailwind, but execution risks—like the iPhone 17 selfie issue—could create short-term headwinds. For now, the data says to watch $350 and $390 as inflection points. Trade with the trend, but keep a close eye on the Bollinger Bands and moving averages. Adobe’s future is bright, but the path won’t be straight.