Trade Call on Adobe Using Cash Secured Puts

21 days ago

Speaker

"Now, let me show you what I'm talking about here because remember the way I'm using options here isn't about gambling. It's about a strategy to increase your returns. So, let's say I'm going to pick a date in the future. Let's say January 23rd and I want to buy Adobe at it's currently at 357. Well, I want to buy it at 3.40. Somebody's going to pay me 3.67 per share. No matter what, I get that money even if they get the shares or doesn't get the shares. And a month from now, if the stock is below 340, I get to buy the stock at 340, but I also got 370 along the way. So, I essentially bought it for 336."

The speaker outlines an options strategy using cash secured puts on Adobe (ADBE). The plan involves potentially acquiring Adobe shares at a lower price if the stock falls below 340, while collecting premium income at 3.67 per share. This actionable trade call is intended to generate a higher return on cash and mitigate risk, reflecting a bullish view on Adobe's fundamentals despite its current price.

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