When it comes to creative software, ADBE is a true market leader. The company is most well known for its creative suite subscription bundle, which includes popular media editing applications such as Photoshop, Illustrator, and After Effects. ADBE stock has performed extremely well in recent years, and despite the run, one big bull believes it will continue to rise.
A large hedge fund has accumulated 5100 of ADBE 16 Oct’20 $420 calls in June-July’20. It paid approximately $20m for these calls (or $35-40 per option contract on average). Today, the fund sold these calls for $56.41, while buying the same number of ADBE 15 Jan’21 calls for $77.91 (see screenshots below). This implies that the fund has rolled out its existing long ADBE position into January 2021 betting almost $40m that ADBE stock price will continue to rise in the future.
ADBE, Closing 16 Oct’20 Calls
ADBE, Buying 15 Jan’21 Calls