Calls hit the jackpot in Wynn Resorts

Bullish traders cashed in after Wynn Resorts reported earnings this morning.

On March 31, Investitute’s proprietary scanners showed that more than 2,900 May $115 calls were purchased for $5.20 to $5.81 with the stock trading around $114.47. Those contracts went for as much as $12.28 this afternoon, more than doubling in value.

Wynn’s shares rose about 9.4 percent in that same time frame, a strong move but nowhere near the percentage gain of the calls. The contrast underscores the kind of leverage that can be achieved through options.

Long calls lock in the price where the stock can be purchased, gaining with a rally and providing leverage to the underlying shares. But the contracts can quickly lose value if the stock stalls or pulls back.

WYNN was up 5.9 percent to close at $125.19 today. The casino operator’s quarterly results beat estimates with strong revenue from its properties in Macau.