The company's innovation pipeline provide long-term growth potential, with the earnings event likely serving as a catalyst for further upside.
With expected EPS growth of 14% and revenue growth of 11%, Adobe maintain its leadership in the software industry.
To capitalize on the potential for an earnings-driven rally, we suggest using a "broken wing butterfly," which offers a high reward-to-risk ratio.
Specifically, I suggest the ADBE Sep 20, 2024 $585/630/650 Call butterfly at $10.96 Debit.
This strategy entails: • Buying the Sep 20 $585 Calls @ $18.80 • Selling the Sep 20 $630 Calls (2 contracts) @ $5.53 • Buying the Sep 20 $650 Calls @ $3.22 This butterfly strategy offers a maximum reward of $3,404 per contract while limiting risk to only $1,096 per contract.
Organizations:
Adobe, CNBC, NBC UNIVERSAL