May 07, 2013 (Marketintelligencecenter.com via COMTEX) -- Cheesecake Factory Inc (NASDAQ:CAKE) closed Monday's trading session at $39.50. In the past year, the stock has hit a 52-week low of $29.44 and 52-week high of $41.02. Cheesecake Factory (CAKE) stock has been showing support around $39.19 and resistance in the $40.07 range. Technical indicators for the stock are Bullish and S&P gives Cheesecake Factory (CAKE) a weak 2 STARS (out of 5) sell rating. For a hedged play on Cheesecake Factory (CAKE), look at the Jul '13 $40.00 covered call for a net debit in the $38.30 area. That is also the break-even stock price for this trade. This covered call has a duration of 74 days, provides 3.04% downside protection and an assigned return rate of 4.44% for an annualized return rate of 21.89% (for comparison purposes only). A lower-cost hedged play for Cheesecake Factory (CAKE) would use a longer term call option in place of the covered call stock purchase. To use this strategy look at going long the Cheesecake Factory (CAKE) Jan '14 $30.00 call and selling the Jul '13 $40.00 call for a total debit of $8.95. The trade has a lifespan of 74 days and would provide 1.39% downside protection and an assigned return rate of 11.73% for an annualized return rate of 58% (for comparison purposes only). Cheesecake Factory (CAKE) has a current annual dividend yield of 1.21%.
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As of Friday, 05-03-2013 23:59, the latest Comtex SmarTrendA? Alert,
an automated pattern recognition system, indicated a DOWNTREND on
06-04-2012 for CAKE @ $30.27.
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provider or go to www.mysmartrend.com
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