Adobe (ADBE) Options Signal High Conviction at $335 Put and $350 Call: Here’s How to Position for Volatility

• Adobe (ADBE) trades at $339.86, hovering near its 200-day moving average of $384.04, with Bollinger Bands suggesting oversold conditions.
• Options data shows heavy open interest in OTM puts at $335 and calls at $350, with a put/call ratio of 0.808 (bearish bias).
• Recent news highlights Adobe’s $200M AI acquisition and Google Cloud partnership, but shares remain 24% below their 52-week high.

Adobe’s stock isn’t just trading—it’s telling a story. Right now, that story has two sides: a technical setup screaming caution and a fundamentals-driven narrative hinting at a rebound. The options market is betting on a volatile near-term outcome, but the company’s AI-driven moves could flip the script. Let’s break it down.

Where the Money Is: OTM Options and Sentiment Signals

The options chain for ADBE is a chessboard of bets. This Friday’s expiring contracts show 2049 open puts at $335 and 2049 open calls at $350—a tight cluster that screams “key inflection points.” The $335 put is especially telling: it’s just 1.1% below the current price, suggesting traders are hedging against a sharp drop. Meanwhile, the $350 call (3.3% above the price) has enough open interest to imply some bullish conviction, though it’s dwarfed by the put volume.

The put/call ratio of 0.808 (put open interest vs. call open interest) isn’t just bearish—it’s aggressively bearish. For every three calls, there are four puts. That’s not just fear—it’s a strategy. Traders are positioning for a downside move, possibly using bear put spreads (like the 233% return idea mentioned in recent analysis). But here’s the catch: Adobe’s fundamentals don’t scream collapse. The company’s AI investments and enterprise partnerships are real, and the stock’s 24% drop this year has created a valuation gap that analysts still rate as a “moderate buy.”

The News vs. the Numbers: A Tug-of-War

Adobe’s recent headlines are a mixed bag. On one hand, the $200M Figma AI acquisition and Google Cloud partnership are big bets on the future. On the other, the stock’s 24% decline has institutional investors recalibrating. The key question: Does the market trust Adobe’s AI roadmap enough to justify a rebound?

The answer isn’t clear-cut. Analysts love the company’s AI integration and recurring revenue model, but the options data suggests skepticism. That tension creates an opportunity. If Adobe’s upcoming earnings report (with expected guidance revisions) validates the AI-driven growth narrative, the $335 put could act as a catalyst for a short-covering rally. Conversely, if the stock breaks below $335, the puts could accelerate the decline.

Trade Ideas: Stock and Options Plays

For options traders, the $335 put (expiring Friday) is a high-probability play. With 1440 open contracts, it’s the most liquid OTM put. A bear put spread using this strike and a lower strike (say, $327.5) could lock in 233% returns if ADBE closes below $335 by Friday. For those bullish on the long-term, the $350 call (expiring next Friday) offers a way to play a rebound without full stock exposure. It’s a 3.3% out-of-the-money bet that aligns with Adobe’s AI-driven growth story.

Stock traders should watch two levels: $340 (current price) and $349 (30-day moving average). If ADBE holds above $340, consider a long entry near $338 (intraday low) with a stop below $335. If it breaks $335, shorting near $333 with a target at $327.5 could capitalize on the put-heavy sentiment. The 200-day MA at $384.04 is a distant ceiling—don’t expect a quick rebound there—but the 30D MA at $349 is a near-term resistance to watch.

Volatility on the Horizon: What to Expect

Adobe’s story isn’t over. The company’s AI investments are real, and its partnerships with Google Cloud and Figma are positioning it for long-term growth. But the near-term is a tightrope walk. The options market is pricing in a 10–15% move by Friday, and the stock’s technicals suggest it could swing either way. If Adobe’s earnings report in the coming weeks confirms Digital Media ARR growth and AI traction, the $335 put could become a floor. If not, the bearish bias might harden.

For now, the key takeaway is this: Adobe is at a crossroads. The options data leans bearish, but the fundamentals hint at a rebound. Traders who position for volatility—whether through puts, calls, or strategic shorting—could ride the next leg of this story. Just keep an eye on those Bollinger Bands: the lower band at $326.37 is a psychological level that could either hold or break the stock’s back.