$ADBE bulls keep winning

Bulls quadrupled their money in winning upside option positions on Adobe (ADBE) today.

On Nov. 22 , Market Rebellion’s Unusual Activity Scanners identified the purchase of 4,000 Weekly $310 calls, expiring this Friday, for $0.67 to $0.75 with shares at $298.28. This was clearly a new position, as open interest in the strike was a mere 134 contracts before the trade occurred.

Those calls traded for as much as $2.87 this morning, more than 4 times their original purchase prices. The stock rose 3.67% in the same time period, an impressive move but nowhere near the gains in its options.

It is the third winning trade in the name to be posted on Market Rebellion in the past month.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

ADBE opened higher this morning to $309.90 but has since pulled back to $302.84, off 2.16% on the day. The software maker held its financial analyst meeting on Nov. 4 and will report earnings after the close of the market on Dec. 12.