Adobe (ADBE) Options Signal Bullish Breakout Potential: Key Strike Levels and Trade Setups for Dec 29, 2025

• ADBE trades at $352.64, down 0.33% from its Dec 29 open, with a 52-week high of $465.70 and low of $311.58.
• Options open interest shows a bearish put/call ratio of 0.88 (calls dominate), with heavy call volume at $360–$380 strikes and puts at $325–$350.
• Q4 2025 earnings beat estimates, but FY2026 guidance sparked mixed analyst reactions, with a median price target of $422.50 (19.7% upside).

The data tells a story of cautious optimism: ADBE’s options market is loaded with bullish bias at key resistance levels, while technicals hint at a potential rebound from oversold territory. Here’s how to position for it.Bullish Bias at $360–$380, But Downside Risks Lurk Below $340

Let’s start with the options chain. This Friday’s (Jan 2, 2026) top call open interest is clustered at $360–$380 strikes, with the $365 call (ADBE20260102C365) leading at 590 contracts. That’s not just noise—it’s a vote of confidence from big players who expect a rebound above current levels. Meanwhile, puts at $325–$350 (ADBE20260102P350) suggest hedging activity for a potential drop below $340, which would test the 200D MA at $363.25.

The put/call ratio of 0.88 (calls > puts) reinforces the bullish tilt, but don’t ignore the $325–$340 put-heavy zone. If ADBE breaks below $344.15 (middle Bollinger Band), those puts could accelerate a sell-off. No major block trades to flag here—this is a quiet, institutional-grade setup.

Earnings Beat Meets Mixed Guidance: Is the Market Pricing in Growth?

Adobe’s Q4 results were solid—$5.50 EPS, $6.19B revenue—but FY2026 guidance left a bitter aftertaste. Analysts are split: Citi trimmed its target to $387 (Neutral), while BMO stuck with $400 (Outperform). The $422.50 median target implies a 19.7% upside from today’s price, which aligns with the call-heavy options data.

Institutional investors are also mixed. Ethic Inc. and Norris Perne & French LLP cut stakes, but others like Schmidt P J Investment Management added shares. Adobe’s 81.79% institutional ownership means big moves here will ripple through the market. The key takeaway? The stock isn’t loved, but it’s not dead either. The $343 price tag feels undervalued against 36.5% operating margins and a $1.9B SEMrush acquisition bet on AI-driven growth.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, the most compelling plays are:

• Bullish Call Spread: Buy ADBE20260102C365 (strike at $365, expiring Jan 2) and sell ADBE20260102C375. If ADBE breaks above $365, this setup caps risk while riding the momentum.
• Bear Put Hedge: Buy ADBE20260102P345 (strike at $345) to protect against a drop below $340. The 464 open interest here suggests others are doing the same.

Stock traders should watch two levels:

• Entry: Consider buying ADBE near $347–$349 (200D MA support) if it holds above $344.15 (middle Bollinger Band).
• Targets: First resistance at $355.72 (30D support/resistance), then $365 (call-heavy zone). Exit above $365 for a 3.5% gain in 3 days.

Volatility on the Horizon

Adobe’s 50.51% implied volatility suggests a wide trading range ahead—between $284 and $363. That’s a 68% probability window, but analysts project $450.32 as a long-term target. The RSI at 57.32 isn’t overbought yet, so there’s room for a rally.

Bottom line: This isn’t a no-brainer buy. But if ADBE holds its support and the $365 call-heavy zone gets tested, the risk/reward tilts in your favor. Keep an eye on the 200D MA—it’s the last line of defense before the bearish puts take over.