ADBE marked a one-year high last week
Adobe Inc (NASDAQ:ADBE) is set to report earnings after the close on Thursday, Sep. 14. The stock has closed its past three post-earnings sessions higher, including a 5.9% pop in March. Over the past eight sessions, ADBE has averaged a next-day swing of 4.5%, regardless of direction, which is lower than the 8% move the options pits are pricing in this time around.
For the past week, ADBE has been consolidating just below the $570 level, home to last week's 52-week high of $570.23. Today, however, shares were last seen moving lower, down 4.2% to trade at $540.94 at last glance. Since the start of the year, ADBE is up 61.1%.
It's worth noting that Adobe stock's 14-day relative strength index (RSI) of 75.2 sits in "overbought" territory. This suggests a short-term bounce may be in the cards.
It might be a good idea to weigh in on ADBE with options. The stock's Schaeffer's Volatility Index (SVI) of 34% stands higher than just 18% of all other readings from the past year, implying near-term option traders are pricing in relatively low volatility expectations. The security has tended to exceed these volatility expectations during the past year, too, per its Schaeffer's Volatility Scorecard (SVS) of 90 out of 100.