Wynn Resorts, Limited (WYNN) Weekly Calls Popular As Casino Names Take Off

Casino stocks are hot today, and Wynn Resorts, Limited (NASDAQ:WYNN) is no exception

by Josh Selway

Published on Jun 4, 2015 at 11:17 AM

Casino firm Wynn Resorts, Limited (NASDAQ:WYNN) is powering higher -- thanks to a sector-wide rally -- as investors continue analyzing gaming conditions in Macau. The shares were last seen 6.3% higher at $108.43, and option traders are betting on even more short-term upside.

Overall call volume is running at five times the expected intraday pace, with apparent buy-to-open action at WYNN's weekly 6/5 110-strike call -- its most popular option. By purchasing these weekly calls, traders expect the shares to topple $110 by the close on Friday, when the contracts expire.

Technically speaking, the stock has struggled since its post-earnings bear gap on April 29, down about 17%. Moreover, the shares have trailed the broader S&P 500 Index (SPX) by 23.8 percentage points during the past three months.

Despite the stock's lackluster technical performance, option traders have continued to gravitate toward calls. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WYNN has a 10-day call/put volume ratio of 1.87, which is higher than 89% of similar readings from the past year. Said differently, calls have been bought to open over puts at a faster-than-usual rate. 

Most covering analysts maintain a skeptical outlook on the security, though. Eleven brokerage firms call Wynn Resorts, Limited (NASDAQ:WYNN) a "hold," with five others saying it's a "buy" or better." Elsewhere, WYNN's consensus 12-month price target of $129 represents a 19% premium to current levels. 

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

This Lithium Miner Has A Huge New Discovery
Click to continue to advertiser's site.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
This Lithium Miner Has A Huge New Discovery
Click to continue to advertiser's site.