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What Options Traders Are Saying About Adobe

Wednesday, 31 Dec 2008 | 10:46 AM ET

Adobe Systems is down more than 51 percent this year — but is seeing huge call activity.

The average daily call volume is 3,300, but Tuesday the software maker saw more than 12,000 contracts trade at the February 22.50 strike alone (AEQBX), most of them for $1, according to OptionMonster's tracking systems.

Shares of the company, which publishes Photoshop, Dreamweaver, Flash, and other popular applications, were up 2.58 percent to close at $21.05.

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Some of the call activity was part of a "roll-down" strategy, whereby the owner of April 45 calls closed those contracts and bought the February 22.50 calls, taking a loss on the April contracts and opening the Febuary positions.

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Other Software Powerhouses:

Red Hat

Oracle

Novell

SAP

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.

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Disclaimer

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SAP
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