Cloud Kings Arising Pt. 1

I wanted to give you a heads up on a setup on one of my favorite tickers — Adobe. Now that the earnings report is complete — and the stock experienced a pullback, within the expected move — I can look at it for a swing trade.

Adobe is one of my favorite stocks to trade.

Why?

It has a relatively predictable pattern. I especially love to trade this one on a run going into earnings. Currently, it has a daily squeeze, and Phoenix shows it’s starting to turn higher. Additionally, it’s one of my top companies listed on my Phoenix Folio, and it’s also a part of my Cloud Kings list.

From a macro perspective, Adobe doesn’t really have a strong competitor in the content creation suite line. Adobe’s shift to the cloud in key software products, now considered software as a service, (in the likes of Adobe Lightroom and Adobe Photoshop) is able to keep customers within their ecosystem in a more consistent manner than the previous one-off purchase model. They have an expanding revenue base with their customer experience management system as well. Their products are top line, and with their unique offerings, they command a large part of this space.

How I’m Trading It

Check out my video from last night here for an in-depth analysis.

Due to the fact that ADBE does have overhead resistance at $265, I’m trading this name with two conservative butterflies, a regular fly and an unbalanced, and putting on one long call for good measure.

Want to Learn More?

As mentioned earlier, ADBE is one of my favorite picks from the Phoenix Folio. I’m watching ever so closely to resistance at $265. Want to Find Phoenix yourself? Join me on April 4th for live trading. Get all the details here.

P.S. I’ll be sending out a special Pt. 2 edition to this issue later on today, so be on the look out for that in your inbox. You’ll definitely want to check it out because it’s all about Netflix.

1 thought on “Cloud Kings Arising Pt. 1”

Leave a Comment

Up Next...

Butterflies + Put Credit Spreads Combined

A Bullish Earnings Call Last week, in the trading room, one of our members requested that I analyze the ticker AAP. This ticker belongs to Applovin, a company I’ve never traded before. This find is a prime example of the collaborative aspect of the trading room, and it’s why I appreciate our dedicated traders so … Read more

Read More

Walmart: Earnings in Focus

Walmart Earnings: May 16th Walmart is reporting earnings on Thursday, May 16th, before the bell. This is one of the most important earnings reports this week because it will show investors how the largest retailer in the United States and the world is faring. Between high inflation, consumer sentiment, and behavior, various factors could impact … Read more

Read More

Trading Directional Butterflies

Earnings Strategy In this Trade Review video, I cover my 100% winner which was a directional butterfly in Amazon. I traded this ticker due to a combination of a technical plus fundamental setup, where I had a solid entry with an edge. In the video, I explain how I used the options chain combined with … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now
all-as-seen-on-logos