Wynn Resorts Stock Breakout Turns Up Heat on Doubters

M&A chatter continues to spur Wynn Resorts stock to fresh highs, but analysts aren't yet convinced

Mar 21, 2017 at 9:49 AM
facebook X logo linkedin

Casino stock Wynn Resorts, Limited (NASDAQ:WYNN) recently broke out above a trendline connecting a series of lower highs since last September -- a pattern that often results in trending behavior. The shares are also trading well above the $104 level, which served as resistance in mid-2015, and again through much of 2016. Fueling some of the stock's recent gains has been a round of M&A chatter, which a spokesperson for the company has denied, but which could resurface in the future, giving WYNN another lift. With the shares up 27% year-to-date, this looks like an opportune time for bulls to enter, with our target in the $125 region representing half the stock's all-time high.


Despite the stock's recent gains, analysts have yet to upwardly revise their opinions on WYNN. Of 14 brokerage firms providing coverage, 10 rate the shares a "hold" or "strong sell," leaving plenty of room for future upgrades, which could be a boon for the shares.

Meanwhile, short sellers have been in covering mode in recent months, since these bearish bets topped out along with the stock in September. But nearly 10% of WYNN's available float remains dedicated to short interest, indicating there's buying power left to fuel the next move higher.

It's an unusually appealing time to purchase premium at the moment, too. WYNN's Schaeffer's Volatility Index (SVI) of 29% is seated below 94% of all readings from the past 12 months, indicating near-term options are currently well-priced, from a volatility point of view. Last but not least, our recommended call option has a leverage ratio of 7.1, meaning it will double in value on a 13.9% rise in the underlying shares.

Subscribers to Schaeffer's Weekend Series service received this WYNN commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Series is one of our most popular trading services.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI