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Wynn Resorts, Limited (WYNN) traders are buying calls
Wynn Resorts, Limited (NASDAQ:WYNN) is down 1% at $125.84 -- and earlier, touched a fresh yearly low of $122.50 -- after Morgan Stanley cut its price target on the equity to $145 from $185 while downgrading its rating to "equal weight" from "overweight." What's more, Elaine Wynn and the WYNN board are beefing over whether she deserves to keep her directorship, which is up for consideration at the April 24 shareholder meeting. Nevertheless, bullish activity in the options pits is ramping up, with some traders betting on the equity to move north from today's low.
In afternoon action, WYNN options are exchanging hands at nearly double the average rate. Today's most active contract is the March 125 call, which is seeing buy-to-open activity. By purchasing this call, traders expect the stock to extend its climb above the strike price by the close on Friday, March 20, when the contract expires.
Today's appetite for calls continues the recent trend, as WYNN's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 1.55 sits in the 82nd percentile of its annual range. Elsewhere, the brokerage bunch is divided on Wynn Resorts, Limited (NASDAQ:WYNN), as over half of covering analysts rate the stock a "hold." Meanwhile, short interest increased by 23.6% over the past reporting period.