There are software stocks that sell technology that report earnings this week. I will break down the various options trading scenarios into earnings, focusing on one that will benefit from a big move in either direction. Adobe ( ADBE ), which reported Thursday, is a global leader in digital media, marketing, and document management solutions. Our core business is centered around creative software, such as Photoshop, Illustrator, and Premiere Pro, used by industry professionals for graphic design, video editing, and content creation. Adobe’s Creative Cloud subscription model generates recurring revenue and maintains a solid customer base, from freelancers to large enterprises. Adobe’s Document Cloud, featuring Acrobat and PDF solutions, is essential in digital document management and e-signatures. Adobe Experience Cloud is a key growth driver, offering tools for digital marketing, analytics, customer experience management, and advertising. As businesses shift to a digital-first strategy, Adobe’s analytics and personalization technologies present significant opportunities. The rise of AI and machine learning also enhances Adobe’s value proposition. The AI ​​framework, Adobe Sensei, powers automation and predictive analytics in content creation, marketing, and user engagement. Adobe’s portfolio of digital products is expected to grow organic sales by 12% to 15% in constant currency over the next three years, with a non-GAAP operating margin of at least 45%, according to analyst estimates. The generative AI tool, Firefly, can increase the average revenue per user. Adobe differentiates itself by offering built-in copyright protection for direct commercial use despite competition from companies like OpenAI. Adobe’s revenue has grown 77% over the past five years, although the pace of growth has slowed. Net income has grown by 85% over the same period, albeit, as shown in the chart, with greater volatility. Net of buybacks, earnings per share have grown 99%. The company’s stock buyback plan, announced in March, aims to buy back 10% of its outstanding shares, or $25 billion at current prices, over the next four years. An impressive net profit margin of 30%. Although Adobe has underperformed the S & P 500 by nearly 20% year-to-date, more recently, the gapped stock should be more when they report earnings on June 14th. The company outperformed the broader tech sector by 17.5% since June 13. However, tech stocks took one of the most brutal hits in market volatility since Labor Day. This trade presents the trader with a dilemma, and the options market represents indecision. Historically, Adobe’s earnings-related moves have averaged around 5.4%, but the most recent two quarters have seen larger moves, which is probably why the options market is currently showing ~7.6% moves for the day after earnings and 8.4% for the week as a whole. One way to reduce part of the risk is to trade the call calendar up, choosing an attack that matches the given move, such as the $610 Sep/Jan call spread. Of course, any bears out there can also use the calendar to bet on the downside move, using the $500 Sep / Jan put calendar. January expirations will experience a more modest “vol crush” than closer options due to not only this week’s earnings but also December’s earnings and many potential macro catalysts before the end of the year. Combining phones and putting calendars together is a trade commonly referred to as a strangle swap. I’ve provided an example of that trade here: Sell Sep 20 $500 Buy Buy Jan 17 $500 Buy Sell Sep 20 $610 Buy Jan 17 $610 Call Can benefit from an 8% to 9% up or down move between now and September expiration. DISCLAIMER: (None) All opinions expressed by CNBC Pro contributors are the opinions only and do not reflect the opinions of CNBC, NBC UNIVERSAL, its parent company or affiliates, and may have been previously disseminated on television, radio, internet or other medium. THE ABOVE CONTENT IS SUBJECT TO THE TERMS AND CONDITIONS AND THE PRIVACY POLICY. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR RECOMMENDATION TO PURCHASE SECURITIES OR OTHER FINANCIAL ASSETS. The content is GENERAL and does not reflect the unique personal circumstances of any individual. THE ABOVE CONTENT MAY NOT APPLY TO YOUR PARTICULAR SITUATION. Before making any financial decisions, you should strongly consider seeking the advice of your financial or investment advisor. Click here for full disclaimer.