Adobe Stock Plunges: Bear Put Spread Suggested

Adobe stock's bearish signals prompt a Bear Put spread. Act now for a potential 233.33% return on risk.

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2025 October 30 . 7:13 PM

1 min read

This picture is clicked outside. In the foreground we can see there is a lot of snow. In the center... — This picture is clicked outside. In the foreground we can see there is a lot of snow. In the center there is a bear seems to be walking on the ground. In the background we can see the rocks.

Adobe Stock Plunges: Bear Put Spread Suggested

Adobe Systems (ADBE) stock has shown bearish signals, leading to a suggestion of a Bear Put spread trade. This move anticipates a continued decline in the stock's price.

ADBE has broken below its 50-day moving average, making it a bearish candidate on stock screeners. Additionally, its Relative Strength has dipped below 50%, further supporting a bearish trend. The Technical Opinion rating stands at 88% Sell, with a strengthening short-term outlook.

To capitalise on this trend, a Bear Put spread is suggested. This involves buying a December 19 put with a strike price of $285 and selling the $280 put. The maximum profit of $350 is achievable if ADBE stock falls below $280 by December 19, yielding a 233.33% return on risk. The breakeven point for this trade is $283.50.

Adobe Inc. operates in the digital media solutions, analytics, and experience cloud segments, catering to content creators, web application developers, and digital media professionals. Despite its strong customer base, the current market conditions and technical indicators suggest a bearish outlook. However, it's crucial to remember that options trading carries significant risk, with the potential to lose 100% of the investment.