Cheesecake Factory CAKE Stock & Option Analysis

Cheesecake Factory stock trades under the ticker CAKE & closed for trading at $62.47/share on 6/8/2021.

CAKE stock has just completed a bullish MACD crossover, along with a price breakout above its 10 Day Moving-Average, which shows that there is still momentum to the upside for their shares.

Cheesecake Factory CAKE Stock Technical Performance For The last Year

CAKE Stock Price: $62.47

10 Day Moving-Average: $57.98

50 Day Moving-Average: $58.85

200 Day Moving-Average: $44.31

RSI: 61

While CAKE stock’s volume has been more quiet in 2021 than 2020, they have begun heating up in June again.

Their RSI is showing signs that the climb can continue without venturing too deep into overbought territory, and their 10 Day Moving-Average is about to cross their 50 Day Moving-Average bullishly, which is another good signal for short-term traders.

Cheesecake Factory stock has options, and I am looking at the $60 calls that are currently in the money, as well as some further out $65 calls.

I also like the slightly out-of-the-money puts at $60 as a hedge, as 4% to the downside puts them in the money, while ~4% to the upside puts the $65 calls in the money.

From a long-term investment standpoint it may be worth waiting to buy into them, as their current resistance is just under $66/share, so unless you plan on starting a position now & averaging it down, there appears to be more initial downside than up for the long-haul.

Restaurants as a whole are looking strong from our technical analysis perspective, with BJ’s & Chuy’s Holdings also showing similar strength.

Overall, CAKE stock & options appear to have a great opportunity for short-term traders looking to take advantage of their recent surge in momentum.


Leave a Reply

Your email address will not be published. Required fields are marked *