by Steven Sarnoff
Though you won’t find your favorite vegan technical analyst partaking of Cheesecake Factory ($CAKE) fare, the shares are moving sweetly for our Options Hotline subscribers.
In mid-September I noticed the unhealthy eatery’s shares were not as sickly as they appeared. The signs of a potentially vigorous and natural rebound were flashing and, from the menu of available options, I recommended a January $40-strike call for our readers.
Here’s an excerpt and my chart from the 09-17-17 Options Hotline:
And here is my daily candlestick chart, as of today’s close:
You can see that $CAKE is tracing out a shapely rounded bottom, as buyers have been eating up shares, with eyes on a move toward our targeted resistance (supply) at $46. That would multiply our call option owners’ money in a short amount of time, with an always known and strictly limited risk. We would then politely excuse ourselves from the table. Above that, resistance will come in around $50.
Ultimately, the restaurant franchise may fall flat. Longer-term charts point lower. But price movement illustrates the proof is in the pudding. And, for now, that pudding is nice and sweet.
If this type of options action whets your appetite, you’re welcome to subscribe and have a seat at our table while we vie for fun and profit and seek to stay a step ahead of the crowd.
Let me know if you have any questions.