Noteworthy Monday Option Activity: KROS, RH, ADBE

Options activity in RH and ADBE has surged, with volumes reaching approximately 91.5% and 91.2% of their respective average daily trading volumes. Notably, the $185 strike put option expiring June 13, 2025, for RH and the $385 strike put option expiring June 13, 2025, for ADBE experienced particularly high volume, indicating increased bearish sentiment for these stocks.

Analysis

Significant options market activity has been observed for RH (Symbol: RH) and Adobe Inc. (Symbol: ADBE), with today's contract volumes reaching 10,382 for RH and 24,817 for ADBE. These volumes represent approximately 1.0 million and 2.5 million underlying shares, respectively, accounting for a substantial 91.5% of RH's and 91.2% of ADBE's average daily trading volume over the past month. Notably, there was particularly high volume in specific long-dated put options: for RH, the $185 strike put option expiring June 13, 2025, saw 526 contracts traded (representing 52,600 underlying shares), and for ADBE, the $385 strike put option expiring June 13, 2025, recorded 1,329 contracts traded (representing 132,900 underlying shares). This elevated activity in put options, especially at these specific strike prices and far-dated expirations, suggests increased bearish sentiment or significant hedging activity by market participants for these two stocks looking towards mid-2025.

Key Decisions for Investors

• Investors should monitor the $185 strike price for RH and the $385 strike price for ADBE, particularly around the June 13, 2025 expiration, as the concentrated put volume indicates these levels are of significant interest to options traders.