Cheesecake Factory Inc. (NASDAQ: CAKE) shares are trading higher today after an analyst with SunTrust Robinson Humphrey upgraded CAKE from Neutral to Buy. If you think that the company won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on CAKE.

After hitting a one-year high of $29.78 in April, the stock hit a one-year low of 21.45 on Friday. CAKE opened Monday morning at $22.03. So far today, the stock has hit a low of $21.98 and a high of $22.42. As of 11:05, CAKE is trading at $22.27, up $0.61 (2.8%). The chart for CAKE looks bearish and steady, while S&P gives the stock a 3 STARS (out of 5) neutral rating.

For a bullish hedged play on this stock, I would consider a December bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think, but still leverage nice returns. For this particular trade, we will make a 5.3% return in just seven weeks as long as CAKE is above $20 at December expiration. Cheesecake Factory would have to fall by more than 10% before we would start to lose money. Learn more about this type of trade here.

CAKE hasn't been below $20 at all in the past year, and has shown support around $21.50 recently. This trade could be risky if the company's recent downward trend continues, but even if that happens, this position could be protected by psychological support at $20.

Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CAKE.