Has Adobe (ADBE) Reverted to a Bullish Trend?
With the markets gaining upward momentum, several analysts have had good things to say about Adobe. Here is what the IBD thinks about the stock - Is Adobe Stock A Buy Right Now? Here's What Earnings, ADBE Chart Show. Also take a look at the following article which makes a case that the company is in a good position to handle the impact of the Coronavirus - Adobe: A Resilient Software Giant
____________ advertisment ______________
China Must Pay Small Biotech
A tiny American biotech owns a patent that could force China to pay it $7.4 billion a year in license fees.
Its current market capitalization is just $1 billion. But analyst Keith Speight thinks it will be worth twice what Facebook is worth or $1 Trillion.
That would be enough to turn every $1,000 into $1,000,000 (or more) >>>
______________________________________
Technicals
The main technical development for ADBE as of late is that it has comfortably regained its 200-day moving average. This particular indicator has drawn buyers in the past and dips below it have generally been short-lived in the recent past. The stock appears to be building a base for its next move higher. Further, the monthly candle for March signals that there was strong buying after the dip below $300. Over the near-term, the $327 price point has proven to be a small hurdle. A break above can lead to a rally towards $360 which is a significant technical area for the stock.
![ADBE Chart April 2020 ADBE Chart April 2020](http://www.terrystips.com/blog/wp-content/uploads/ADBE-Chart-April-2020.png)
*source Tradingview.com
If you agree there's further upside ahead for ADBE, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least a little bit.
Buy To Open ADBE 15MAY20 315 Puts (ADBE200515P315)
Sell To Open ADBE 15MAY20 320 Puts (ADBE200515P320) for a credit of $1.60 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when ADBE was trading near $319. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will only be $1.30 per spread. Each contract would then yield $158.70 and your broker would charge a $500 maintenance fee, making your investment $341.30 ($500 – $158.70). If ADBE closes at any price above $320 on May 15, both options would expire worthless, and your return on the spread would be 46% (525% annualized).
____________ advertisment ______________
Coronavirus: The Top Stocks Benefiting from the Outbreak
The coronavirus story is only getting worse. At the moment, Over 90,000 people have been infected and more than 3,500 have already died around the world. Unfortunately, those numbers may only increase without vaccines. However, there are companies racing to meet that need. We've put together a list of the hottest virus stocks at the moment, which can be viewed in our special report.
Click Here to Download the FREE Report
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
![IBD Underlying Updates April 11, 2020 IBD Underlying Updates April 11, 2020](http://www.terrystips.com/blog/wp-content/uploads/IBD-Underlying-Updates-April-11-2020.jpg)
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 ______________
"An Open Letter to the White House..."
Hi, I'm George Gilder. I've written speeches for Nixon. I've met privately with Ronald Reagan. Now I intend to meet with President Donald Trump. And I'm pretty sure he'll see me.
You can find out why at this link.
It's got nothing to do with politics, taxes, or trade wars. It's about a discovery that could silence Trump's haters... preserve his legacy... and help millions of Americans to get very, very rich.
For details, follow this link...
______________________________________
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 for our Premium Service package ($119.95 value plus an extra 4 months of our Premium Service, valued at another $190.80). You get $300.65 worth of services without paying us one penny. I look forward to having you on board, and to prospering with you.
Terry
|