Long

Gnarly Breakout

Updated

ADBE has been whipsawing bulls and bears since its last earnings report. Last Friday it made a decision and broke out - bulls have it from here near term.

Initial Target = 640 by 1/26/2024
Goal Target = 670 by 1/31/2024

After hitting targets it will likely get a pullback to 630-640 in early Feb before continuing higher to test ATH 700 by March 2024.

I'll send an update of which calls I'm entering on Monday 1/22.

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Just entered the following calls at 2pm 1/22, underlying 608

** ADBE Feb 2 655.00 C for 1.50 (cost basis) ** - these will print, but its more risky than the other calls. Looking to sell for 10.00-15.00 by 2/1 when we hit goal target of 670 [up to +900% potential gain].

** ADBE Feb 9 640.00 C for 4.90 **- this is a less risky play but the premiums are higher, naturally. Looking to sell half for 30.00 [+512% potential gain] when price hits goal target of 670, keeping the other half for if we test ATH at 700 (these will go for 60.00 [+1,125% potential gain])

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Adding calls here (averaging down). 594 was the breakout level (dotted blue horizontal line). The pullback today was a test of that level for support. Its strong here and ready to make a higher high in the coming week.

On the chart there are 3 parallel dashed blue and teal lines - these are the buying pressure/demand. Expect price to trade up the left dashed blue and teal toward targets.

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Big Green days coming today and tomorrow (1/25, 1/26). Another aspect I forgot to mention that offers confluence to my target of 640 is a massive gap to fill to the upside from back in Dec 2023 (gap from 636-650.98).

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Target for Thurs 1/25 = 625 (stop loss 594)
Target for Fri 1/26 = 640 (stop loss 596)

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Took profits on the Feb 2 655 calls: sold for 3.80 (+138% return).

Still holding the Feb 9 640 calls until targets hit.

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Took some profits on the Feb 9 calls for 12.10 (+147% gain).

Still keeping majority of position open until targets hit.

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Buy/add the dip

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brr

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Updated Goal Target = 678 by 2/23/2024

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Responded in the comments recently that the dotted blue (up-sloping) line is my trailing stop loss. So price would need to see a sustained break below to get stopped out. We closed just above that line 2/6, so I am still bullish here. Time to targets will be delayed - need until 2/23 to hit 670s.

JerryManders

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