Adobe Systems Inc. (NASDAQ: ADBE) is seeing shares mostly flat on the day with implied volatility up 3% to 35% ahead of the 12/15 earnings date. More than 9,000 puts have traded as of 11:30 AM EST, with 94% bought offer side in massive blocks of December $37 and $36 puts. Shares have been rejected at the $37 breakout level multiple times in the past few weeks. Adobe shares are trading rich at 20.6X earnings, 6.16X sales, and a PEG of 2.3. JMP placed a $46 target on shares last week. Adobe is launching new products and making strategic collaborations as part of its recent restructuring plan. Put volume is already 3X average on the day.
-JOE KUNKLE, OptionsHawk.com
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