Adobe's Options Signal Bullish Bets at $350: How Traders Can Navigate Friday's Expiry Volatility

• Adobe (ADBE) trades at $330.62, 0.15% below its previous close, with bearish technicals but oversold RSI (26.33).
• Options open interest shows 3295 calls at $400 (Friday expiry) vs. 2857 puts at $300—hinting at a bullish bias.
• Put/call ratio for open interest is 0.84 (calls dominate), but price sits below all major moving averages.

Here’s the thing: Adobe’s options market is sending mixed signals. On one hand, technicals scream caution—30D, 100D, and 200D moving averages all sit above $378. On the other, options traders are piling into out-of-the-money calls like it’s 2021 all over again. The question isn’t whether ADBE will move—it’s which way to bet before Friday’s expiry. Let’s break it down.

Options OI Reveals Bullish Bets at $350, Bearish Hedges at $320

The options chain tells a story of cautious optimism. For Friday expiry, 3295 open interest in $400 calls (a 24% premium above current price) suggests big money is pricing in a sharp rebound. Meanwhile, 2754 puts at $350 (10% below price) act as a hedge against a moderate pullback. The put side isn’t idle either—2857 puts at $300 (15% OTM) show panic buyers ready to pounce if the stock cracks $320.

But here’s the rub: MACD (-4.42) and RSI (26.33) scream oversold, yet Bollinger Bands show the price is still 6% below its 20-day mean. This isn’t a textbook short squeeze—it’s a tug-of-war between technical purists (bearish) and options bulls (bullish). The risk? If the $327.60 support (30D level) breaks, those $300 puts could turn into a fire sale.

No News, But Traders Are Pricing in a Narrative Anyway

Adobe’s news feed is eerily quiet—no product launches, lawsuits, or earnings surprises to move the needle. That means the options action isn’t reacting to fundamentals but to expectations. Think of it like a poker game: players are betting on what they think others will do, not the actual cards on the table.

This creates an interesting dynamic. Retail traders might see the oversold RSI and buy calls, while institutions could be using the $350-$340 call spreads to lock in upside without committing to the $400 moonshot. The lack of news actually amplifies the importance of technical levels—every tick above $341.21 (middle Bollinger Band) becomes a psychological win.

Trade Setups: Calls for Friday, Puts for Next Week

For options traders: Buy the $350 calls expiring Friday (OI: 2754). Why? The strike sits at the 30D support level ($327.60–$327.61) and the 200D resistance ($351.64) forms a natural target. If ADBE holds above $327.60, these calls could surge as the stock rebounds toward $340. For risk management, sell half at $345 or hold through Friday’s expiry if the 200D breaks.

Bearish bettors: Short the $320 puts expiring next Friday (OI: 450). The 30D support is flimsy ($327.60), and the 200D resistance ($354) looms large. If ADBE closes above $330 by Friday, those puts could expire worthless. For stock players: Consider entries near $327.60 (support) with a stop below $326.95. Target zones sit at $341.21 (middle Bollinger) and $351.64 (200D resistance).

Volatility on the Horizon: Balancing Bullish Bets and Bearish Risks

Adobe isn’t a one-way bet. The options market is pricing in a 7–10% move either way by Friday. If the $350 calls expire worthless, the stock could gap down on Monday. But if the 200D line holds, we might see a short-term rally. The key is timing: Friday’s expiry turns the options market into a binary event—win or lose. After that, the focus shifts to next week’s $350 call (OI: 710) and $315 put (OI: 578) battles.

Bottom line: Adobe’s at a crossroads. Technicals say “caution,” options say “opportunity.” The best approach? Treat this like a chess game—use the $350 calls as a speculative play, but keep a bearish hedge in place. In crypto terms, it’s like holding Bitcoin at $30k with a long call on $40k—exciting, but dangerous if you forget the stop-loss. Stay nimble, and watch those $327.60 and $351.64 levels like a hawk.