WYNN Stock Comes Out On Top After Tariff Truce

Wynn Resorts shares have rallied nearly 30% since late October

Deputy Editor
Dec 3, 2018 at 12:01 PM
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Shares of Wynn Resorts, Limited (NASDAQ:WYNN) are up 9.3% this morning, to trade at $119.89, on news of the G-20 summit's temporary U.S.-China trade truce, as well as the recent spike in gambling revenue in the Chinese territory of Macau, where several of the company's operations are located.  Specifically, Macau revenue jumped 8.5% in November, marking the biggest increase since August.

WYNN stock had been on a steady decline since early June, when shares of the casino concern were near their January highs north of $200. However, the stock recently broke above its 40-day moving average, and has recovered almost 30% since its Oct. 29 low of $92.50.

Analysts have high hopes for WYNN, with eight of 14 issuing a "buy" or better rating. However, the stock is now within striking distance of the consensus 12-month price target of $126.24.

Options bulls have been flocking to the stock, too. WYNN sports a 10-day call/put volume ratio of 3.20 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), sitting in the 94th percentile of its annual range. This indicates that traders have had a bigger-than-usual appetite for bullish bets in the past two weeks. 

Today, WYNN options are trading at twice the average intraday pace, with roughly 26,000 calls and 9,200 puts exchanged. Most popular is the December 125 call, with possible buy-to-open activity spotted. If traders are purchasing the calls to open, they expect WYNN to surmount $125 by the close on Friday, Dec. 21, when the options expire.

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