StockTwits Trending Alert: Trading recent interest in CHEESECAKE FACTORY $CAKE

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Quantchabot has detected a promising Bear Call Spread trade opportunity for CHEESECAKE FACTORY (CAKE) for the 16-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CAKE was recently trading at $59.08 and has an implied volatility of 54.92% for this period. Based on an analysis of the options available for CAKE expiring on 16-Apr-2021, there is a 38.67% likelihood that the underlying will close within the analyzed range of $53.61-$59.74 at expiration. In this scenario, the average linear return for the trade would be 28.21%.

Trending on StockTwits: StockTwits® is a financial communications platform for the financial and investing community. On their site, CHEESECAKE FACTORY was recently trending, indicating that breaking news and/or market activity has significantly impacted sentiment toward the stock. This movement can be interpretted as a sign of more near-term price movement for the underlying.

Trade approach: The recent sentiment change in CAKE on StockTwits appears to be significantly negative, indicating that the stock is likely to follow in that direction for investors trading on sentiment. As a result, a bearish strategy could prove effective if the sentiment ultimately turns out to drive trading.

Upside potential: Using this bearish strategy, the trade would be profitable if CHEESECAKE FACTORY closed at or below $61.10 on 16-Apr-2021. Based on our analysis, there is a 63.52% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.