NEW DIRECTIONAL CALL PLAYS

Wynn Resorts Ltd. - WYNN - close: 148.63 change: -1.11

Stop Loss: 146.40
Target(s): 159.75, 169.00
Current Option Gain/Loss: Unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
Shares of WYNN have been consolidating under resistance at the $150.00 level for about three weeks. The stock has reversed twice near the $151.75 level. Yet shares are still building on a bullish pattern of higher lows. If WYNN can breakout to a new multiyear high it could spark some short covering and a run at its all-time highs.

This stock can be somewhat volatile so I am suggesting we keep our position sizes small to limit our risk. We'll use a trigger to buy calls at $152.00. If triggered at $152.00 our targets are $159.75 and $169.00. The $160 and $170 levels look like potential resistance.

Trigger @ $152.00

- Suggested Positions -

Buy the June $160 calls (WYNN1118F160) current ask $2.15

Annotated Chart:

Entry on May xxth at $ xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on May 11th, 2011