Options on Adobe (ADBE) are seeing two times their normal volume ahead of an earnings report due out after the closing bell. Of 19 analysts offering coverage on the stock, the range of estimates is narrow (44 to 46 cents), with consensus of 45 cents a share. ADBE fell from $42.03 at the time of its last report to a recent 18 month low of $30.70 on..yesterday. However, shares are up 90 cents to $31.69 ahead of the report. In the options market, implied volatility in the March contract is in the mid-70s, compared to 38-40 percent in the April contract. Sentiment is mixed with 16,000 ADBE calls and roughly 9,100 puts trading on the day.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.