The trade of the week is Adobe (ticker symbol: ADBE). Some of the traders entered on Friday and some yesterday. Why am I just posting this now? Well I cleared my portfolio last week and I usually don't trade options on Monday to get a clear market direction. I used a custom scan to find plays that are in a bullish squeeze and within 10% of their all time high. Here were the results:
What made ADBE so enticing? The chart of course. Looking at the chart below. Some entered the trade off the 8EMA on Friday. Others entered after the 78.6 broke on Monday. The great thing about a community of traders is that everyone method is a little different but the charts are all the same. What works for you? That's something you can decide and you gain insight from several traders inside our chat. Let's take a look at the chart.
You can see we are above the moving averages and fibonacci lines. We have a target of $235-$240 and looking a directional calls or a put credit spread. I entered into a put credit spread already and looking to buy directional calls to go with it. To see exactly what I'm looking for, JOIN TODAY and receive our Signals room along with our King-Chat and Earnings rooms.