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

by Digital Content Group

Published on Feb 13, 2015 at 11:59 AM
Updated on Jun 24, 2020 at 10:16 AM

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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