Put Traders Target Adobe Stock After Earnings Beat

Investors are weighing AI competition Adobe (NASDAQ:ADBE) stock is slightly lower today, down 0.1% to trade at $248.54 after paring earlier losses.

The software giant is brushing off a better-than-expected third-quarter report, including record revenue of $6.76 billion, as its current-quarter forecast falls short of expectations.

Investors are now weighing concerns about competition from generative AI companies.

The stock is in the midst of a sharp pullback, fresh off four-straight losses.

The shares have potential support at the 120-day moving average, which kept a cap on gains in early June, as well as familiar support at the $240 level, however.

Year to date, the equity is down 28.4%.

ADBE has seen more put volume than usual of late, per its 10-day put/call volume ratio of 1.01 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 96th percentile of its annual range.

Today, Adobe has seen 32,000 calls and 70,000 puts cross the tape, which is six times the amount typically seen at this point.

The most popular contract by far is the weekly 9/11 250-strike call followed by the 240 put in the same series, with positions opening at the former.