Goldman Sachs is bullish on Wynn Resorts' Vegas and Macau prospects
Wynn Resorts Ltd (NASDAQ:WYNN) stock is up 3.3% to trade at $132.95, after the casino giant was added to Goldman Sach's 'Conviction Buy' list. The firm noted Wynn's “best-in-class” Las Vegas business and cited improvement in China’s Macau region.
WYNN traded as high as $134.20 out of the gate, a chip shot from its Oct. 2 four-year high of $134.23. The stock is up 55% in 2025, with a November drawdown finding support at its 100-day moving average. Any sustained move above $134 would be notable, given the double top forming on the charts since December.
There's modest short squeeze potential to monitor. Short interest fell by 5% in the two most recent reporting periods, yet the 4.40 million shares sold short still account for 5.8% of the stock's total available float. At WYNN's average pace of trading, it would take shorts more than four trading days to buy back their bearish bets.
Options traders are loading up on calls. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WYNN's 10-day call/put volume ratio of 5.83 ranks in the 86th percentile of its annual range. So not only do calls outflank puts by a nearly 6-to-1 ratio, but the elevated ratio indicates the rate of call buying has rarely been higher in the last year.
Options are affordably priced amid a post-earnings volatility crush. The stock's Schaeffer's Volatility Index (SVI) of 36% ranks in the 11th percentile of its annual range. Plus, with a Schaeffer's Volatility Scorecard (SVS) at 78 (out of 100), the equity has a history of exceeding option trader's volatility expectations during the past year.