Bear Put spread
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Adobe Systems Bear Put Spread Could Return 233% in this Down Move
Yahoo Finance· 2025-10-30 11:00
Group 1 - Adobe Systems (ADBE) stock has been identified as a bearish candidate after breaking below the 50-day moving average [1] - The Barchart Technical Opinion rating for Adobe is 88% Sell, indicating a strengthening short-term outlook for maintaining the current bearish trend [13] - Adobe operates through three segments, with the Digital Media solutions segment enabling businesses to create and deliver content across various media [14][15] Group 2 - A Bear Put spread trade is being considered, which assumes that Adobe's stock will continue to decline [4] - The proposed Bear Put spread involves buying a December 19 put with a strike price of $285 and selling a $280 put, trading for around $1.50 [8] - The maximum profit for this trade is $350, representing a 233.33% return on risk if Adobe's stock falls below $280 [9]