Count on Adobe for Gains

Adobe hit a recent low of $260 with the pullback in the market and has rebounded to over $290 and gives us a little room for a safe option trade. Operationally we see very little risk in the company with their product suite, leadership and transformation to the cloud well behind them. Any pull back in this stock would be worth buying if you were a long-term investor and wanted a solid company in your portfolio. They report earnings next on December 12th, and ahead of that we're selling the Jan 2020 $250 Puts for $1.71 which expire in 70 days.

We intend to let the value of these options decay into December if the stock hovers around current levels and doesn't pull back significantly, and we'd buy back the options for a gain without having to hold them into Jan 2020. Earnings have been positive the last three periods so we aren't anticipating a shock on future guidance or current period estimates.