Last-Minute Bulls Bet On Wynn Resorts, Limited (WYNN)

Calls are crossing at two times typical rates in Wynn Resorts, Limited's (WYNN) options pits


Published on Feb 13, 2015 at 11:59 AM
Updated on Apr 20, 2015 at 5:32 PM

Call buyers have turned up the heat in Wynn Resorts, Limited's (NASDAQ:WYNN) options pits recently. In the past 50 sessions at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has registered a call/put volume ratio of 1.55, which outranks 89% of all similar readings from the past year. This trend is continuing today, as WYNN's calls are crossing the tape at twice the normal intraday pace.

Speculators have taken a liking to the weekly 2/13 160-strike call, where buy-to-open activity has been detected. These eleventh-hour bulls expect WYNN to topple $160 by the close today, when the weekly series expires. Historically speaking, the shares haven't topped $160 since Dec. 8. Other options traders are looking longer term, buying to open the February 150 call, hoping for WYNN to extend its run above $150 before front-month options expire on Friday, Feb. 20.

Analysts covering the stock are split in their opinions. Six brokerage firms give WYNN a "strong buy" rating, while the remaining eight analysts deem the equity a "hold." Also, the security's consensus 12-month price target comes in at $177.24 -- an 11.3% premium to current trading levels.

Wynn Resorts, Limited (NASDAQ:WYNN) is up 2.9% today at $159.22. However, the equity has underperformed in the past several months. Since reaching a near-term high of $192.45 in late October, the shares are off 17.3%.

Weekly Chart of Wynn Since February 2014

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