Adobe looks cheap to trade ahead of earnings

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Adobe looks cheap to trade ahead of earnings $ADBE (via OptionsAction)

The options market is implying about a 4% move in either direction for shares of the cloud giant after it issues fiscal second-quarter results, Dan Nathan, co-founder and editor of RiskReversal.com, said Monday.

"Earlier in the month, it had a dip. It found some technical support right at its 200-day moving average," he said, adding that now, the risk of buying options on Adobe is muted relative to the implied move.

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