Can ADBE (ABDE) Hold Above the $500 Price Point?
ADBE has doubled from its March low and the following two articles lay out reasons why the stock may continue to gain. One of them even makes a case that the stock is undervalued at current levels, despite to impressive rally as of late - Adobe’s Stock To Continue Growing? and Adobe (ADBE) Up 6.4% Since Last Earnings Report: Can It Continue?
____________ advertisment ______________
Get Out of Cash with These 3 Stocks
The cashless revolution is underway, with a handful of small companies delivering triple-digit gains. One Wall Street expert just named the top 3 stocks to buy now.
Learn more here.
______________________________________
Technicals
After correcting lower last month, ADBE is starting to once again show signs of upward momentum. The stock has posted a series of higher highs and higher lows over the last four weeks as it oscillates higher in a rising trend channel. Buyers have defended the lower line of the channel as well as dips towards the 20-Day moving average. Further, a break above the $500 level earlier this month is a sign of strength. Strong near-term support is seen in the $492-$500 area.
*source Tradingview.com
If you agree there's further upside ahead for ADBE, consider this trade which relies on the stock remaining above the $500 level through the expiration in five weeks.
Buy To Open ADBE 20NOV20 495 Puts (ADBE201120P495)
Sell To Open ADBE 20NOV20 500 Puts (ADBE201120P500) for a credit of $2.08 (selling a vertical)
This credit is $0.02 less than the mid-point of the option spread when ADBE was trading near $503. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will be only $1.30 per spread. Each spread would then yield $206.70. This reduces your buying power by $500 and makes your investment $293.30 ($500 – $206.70). If ADBE closes at any price above $500 on November 20, both options will expire worthless, and your return on the spread would be 70% ($206.70 / $293.30), or 798% annualized.
____________ advertisment ______________
Investors Lining-Up for Epic Gains on High-Grade Gold Discovery
Gold investors are having a field day in 2020 as the yellow metal flirts will all-time highs. The upsurge is producing some of the biggest individual gold-stock gains on record as small-cap exploration firms hit high-grade discovery holes by way of the drill. Here's one such company trading below $1 and sitting on a major gold find with three similar drill-ready projects all set to go.
More details here...
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.
As with all investments, you should only make option trades with money that you can truly afford to lose.
Happy trading,
Terry
____________ advertisment ______________
Do You Have an Account in Any of These Banks?
Bank of America... Wells Fargo... U.S. Bank... Citibank... Chase?
If you do, this new banking regulation that has been called "a game-changer" will affect you.
Millions of Americans will be caught by surprise because there’s not much time left to prepare.
You don't have to be one of them.
Click here now to see the details.
______________________________________
Any questions? Email Colin@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Colin@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you up for our Premium Service package ($97 monthly subscription). You get 3 months ($291 worth) of services without paying us one penny.
I look forward to having you on board, and to prospering with you.
Terry
|
