Bulls triple money in $WYNN

Option traders are racking up big gains today from upside positions in Wynn Resorts (WYNN) for the second time in as many weeks.

On Aug. 29, Market Rebellion’s Unusual Activity Service flagged the purchase of 4,600 January $110 calls for $9.10 to $9.60 with shares at $106.47. This was clearly fresh buying, as open interest in the strike was only 607 contracts before that session began.

Those calls have traded for as much as $29.45 so far today, more than 3 times their purchase prices. The stock rose 30.94% in the same time period, a large move but nowhere near that of its options on a relative basis.

It is the second winning trade in the name posted on Market Rebellion since Dec. 18.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

WYNN is off 0.19% to $139.54 this morning. The company has rallied sharply along with other casino operators since China announced plans to make gambling capital Macau a major financial center.