Calls on Adobe (ADBE, news, chart, volatility) are trading at 5 times their normal pace this morning, with buyers accumulating upside November 27.5 calls even though shares are weaker today, near 24.91 and not far from the 52w low of 24.45 set a week ago. Majority traded for 1.15, giving the buyer a breakeven of 28.65 over the next month, a 15% climb from current price. Earnings are not due until December.
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.