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Wynn Resorts - WYNN - close: 42.18 chg: -2.56 stop: 45.11

Company Description:
Wynn Resorts, Limited is traded on the Nasdaq National Market under the ticker symbol WYNN and is part of the NASDAQ-100 Index. The company owns and operates Wynn Las Vegas, a luxury hotel and destination casino resort located on the Las Vegas Strip which opened to the public on April 28, 2005. Wynn Las Vegas features 2,716 luxurious guest rooms and suites; an approximately 111,000 square foot casino; 22 food and beverage outlets; an on-site 18-hole golf course; approximately 223,000 square feet of meeting space; an on-site Ferrari and Maserati dealership; and approximately 76,000 square feet of retail space. Wynn Resorts, Limited is currently constructing Wynn Macau, a destination casino resort in the Macau Special Administrative Region of the People's Republic of China. (source: company press release or website)

Why We Like It:
It has taken four days of market wide declines but shares of WYNN have finally joined the pack. Shares broke down from its 12-day sideways trading range and dropped to a new one-year low under its May lows. Volume on today's breakdown was very heavy suggesting more weakness ahead. The Point & Figure chart is already bearish and points to a $33.00 target. Traders have a choice on entry points. The major market averages all look short-term oversold. The late day bounce today suggests that the markets might produce an oversold bounce tomorrow. If that is the case then readers might want to wait and see if WYNN bounces back toward the bottom of its recent trading range near $43.50, which should now act as new resistance. A failed rally near $43.50 could be used as a new bearish entry point. The alternative is to open new bearish put positions while the stock trades under $42.50. We do expect the $40.00 mark to act as round-number, psychological support but we expect it will eventually break down. Our end of October target for WYNN is the $37.50-37.00 range. We will exit ahead of the company's earnings report.

Suggested Options:
We are suggesting the November puts.

BUY PUT NOV 45.00 UWY-WI OI=171 current ask $4.10
BUY PUT NOV 40.00 UWY-WH OI=158 current ask $1.55

Picked on October 06 at $ 42.18
Change since picked: + 0.00
Earnings Date 10/31/05 (unconfirmed)
Average Daily Volume = 1.3 million

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