Wynn Resorts Stock Soars After CEO Steps Down

Options traders have been bearish in recent weeks

Managing Editor
Feb 7, 2018 at 9:53 AM
facebook twitter linkedin

Shares of resort and casino company Wynn Resorts, Ltd. (NASDAQ:WYNN) are soaring after CEO Steve Wynn stepped down amid recent sexual misconduct claims. Wynn appointed the company's president, Matt Maddox, as his successor, and in response, the casino stock has received a handful of mixed analyst reactions.

Specifically, WYNN was upgraded by J.P. Morgan Securities to "overweight" from "neutral," though the brokerage firm simultaneously cut its price target to $196 from $200. Jefferies also lowered its price target, to $181 from $220. At last check, Wynn Resorts stock was up 8.% at $176.78, after pulling back sharply from its Jan. 25 three-year high of $203.63. From a broader perspective, WYNN has picked up more than 68% over the past 12 months.

In the options pits, sentiment has been bearish in recent weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows WYNN with a 10-day put/call volume ratio of 0.88, ranking in the 93rd percentile of its annual range. This suggests puts have been bought to open relative to calls at a faster-than-usual clip during the past 10 sessions.

Elsewhere, short interest dropped more than 17% over the past two reporting periods to 3.57 million shares. This is the fewest amount since July 2014, and currently accounts for just 4.5% of the stock's total available float. This data runs through Jan. 15, indicating some of these traders are likely kicking rocks for missing out on WYNN's recent retreat from multi-year highs.

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!