Options News
Calls keep winning in $WYNN
Bullish option traders are making exponential gains today in Wynn Resorts (WYNN). On Oct. 7, our Unusual Activity systems detected the purchase of 7,000 March $105 calls for $12.40 above open interest of 33 contracts with shares at $106.67. Those calls were last marked at $44.90 today, more than 3.5 times their purchase price. The […]
Bullish option traders are making exponential gains today in Wynn Resorts (WYNN).
On Oct. 7, our Unusual Activity systems detected the purchase of 7,000 March $105 calls for $12.40 above open interest of 33 contracts with shares at $106.67.
Those calls were last marked at $44.90 today, more than 3.5 times their purchase price. The stock rose 40.8% in the same time period, underscoring how options can far outperform their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
WYNN is up 2.02% to $150.19 in midday trading. The casino operator was upgraded to a Conviction Buy at Goldman Sachs yesterday afternoon, while also raising its price target for the shares to $181 from $157.