New Options Trading Launched for Wynn Resorts as Opportunities Arise

A recent report highlights the launch of new options for Wynn Resorts Ltd, signaling potential investment opportunities. With varying strike prices and strong premium returns, investors may find attractive strategies for building positions in the stock.

Date: 24-09-2024

AI Rating: 7

The report highlights new options trading for Wynn Resorts Ltd (WYNN), specifically focusing on the September 2025 expiration contracts. Two notable options include a put contract at the $80.00 strike price and a call contract at the $87.50 strike price, both representing enticing investment opportunities.

The put contract allows investors to sell-to-open at $80.00, offering a premium of $7.80 and potentially resulting in a cost basis of $72.20 per share. This price is approximately 4% less than the current trading price of $83.70. Given the reported 65% chance that the put contract will expire worthless, investors could see a 9.75% return on their cash commitment, which presents a lucrative yield opportunity.

On the call side, the contract at the $87.50 strike price has a premium of $9.75. If an investor buys shares at $83.70 and sells the call, they could achieve a total return of 16.19% if the stock is called away by expiration. However, there is a 45% chance it may expire worthless, allowing them to keep both the stock and premium, leading to an 11.65% boost in returns.

Importantly, the implied volatilities for the put and call options are reported at 35% and 33%, respectively, while the actual trailing volatility stands at 27%. These figures suggest that there may be favorable market conditions for engaging in options trading, providing investors with potential strategies to capitalize on future stock performance.

While the report does not mention specific details regarding Earnings Per Share (EPS), Revenue Growth, Net Income, Profit Margins, Free Cash Flow, or Return on Equity, the data surrounding the options contracts indicates a strategic environment for investors interested in WYNN.

Stocks: WYNN