Adobe (ADBE) Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 26 and Jan 2 Expirations

• ADBE trades at $359.13, up 0.92% with volume surging past 1.3M shares.
• Call open interest dominates at $360–$370 strikes, while puts cluster at $350 and $320.
• Analysts cut price targets but keep Outperform ratings; Adobe partners with Runway for AI video tools.

The options market is whispering a clear message: bulls are stacking up for a breakout. With call open interest outpacing puts by 21% and technicals pointing to a short-term bullish trend, ADBE is at a crossroads between consolidation and acceleration.Bullish Sentiment Locked in Key Strikes

The options chain tells a story of cautious optimism. This Friday’s call open interest peaks at $360 (OI: 1,283), $365 (OI: 1,192), and $370 (OI: 1,001), suggesting a collective bet on a push above the 200D MA ($364.95). Meanwhile, puts at $350 (OI: 674) and $320 (OI: 641) hint at downside protection, but the 0.88 put/call ratio (for open interest) shows bulls are in control. No block trades muddy the waters, so this is retail and institutional alignment.

News Flow Fuels AI-Driven Optimism

Adobe’s recent partnership with Runway to integrate AI video tech into Creative Cloud isn’t just a headline—it’s a strategic play to dominate pro workflows. Pair that with GenStudio’s new ad tools and Bernstein’s $506 price target (even after a $2 cut), and you’ve got a narrative that justifies the call-heavy options setup. Jim Cramer’s recent nod on Mad Money—calling ADBE “undervalued” despite near-term risks—adds retail fuel to the fire. The market’s betting Adobe’s AI bets will pay off, even if earnings growth slows slightly.

Trade Setups: Calls, Puts, and Price Levels

For options players, the ADBE20251226C365 (Dec 26 $365 call) and ADBE20260102C375 (Jan 2 $375 call) are prime candidates. The former targets a short-term pop above the 200D MA, while the latter plays for a sustained move into 2026. If hedging, the ADBE20251226P350 (Dec 26 $350 put) offers cheap insurance against a pullback to the 30D support ($355.55).

Stock traders should eye entry near $355.55 if the 30D support holds. A break above the Bollinger Upper Band ($366.76) would validate the bullish case, with $370 as a near-term target. Watch for a breakdown below $348.02 (200D support), which could trigger a test of the $330–$340 put-heavy zone.

Volatility on the Horizon

Adobe’s at a technical and narrative inflection point. The options data and news flow align on a bullish bias, but the RSI (74.7) and MACD histogram (2.65) suggest momentum could wane if the $360–$365 range isn’t cleared. For now, the stock is dancing on the edge of a breakout—trade with the trend, but keep a tight leash on stop-losses. The next 10 days will tell if this is a rally or a rally’s first step.