$WYNN comes up aces for bulls

Wynn Resorts paid off again for upside option positions today as shares hit a new 52-week high.

On Nov. 17, Investitute’s tracking systems detected the purchase of 2,717 December $155 calls as part of a bullish spread with shares at $152.40. Volume was above the strike’s open interest of 2,467 contracts, showing that this was a new position.

Those calls sold for $9.67, more than triple their purchase price. The stock rose 8 percent in the same time period, reflecting the kind of leverage that options can provide.

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 was up 2.96 percent today to close at $164.26. The casino operator, which has rallied on strong numbers from Macau, hit a 52-week high of $165.23 this morning.