Cheesecake Factory (CAKE) with 750 June $47.50/$35 bull risk reversals open for $0.10 credit today as the stock rebounds this week from its 8 week EMA support and top of yearly value area at 38 and builds a massive inverted head and shoulders bottom the past year on the weekly chart. This follows a recent buyer of 1700 March $40 calls at $1.45 and still holding in OI. The stock is reporting earnings next week on 2/22 and these bull risk reversals are getting positioned for a move higher the next several months by selling the 35 puts to open to buy the $47.50 calls. This shows confidence in the 35 level being supportive on any pullbacks from here and even if the stock dropped on earnings it would likely be a buying opportunity. CAKE has a yearly VPOC target above at 46 and above that would be likely headed to 50 as a longer term target.