NEW DIRECTIONAL CALL PLAYS
Wynn Resorts - WYNN - close: 75.81 change: -0.52 stop: 69.29
Wynn Resorts, Limited is traded on the Nasdaq Global Select Market under the ticker symbol WYNN and is part of the S&P 500 and NASDAQ-100 Indexes. Wynn Resorts owns and operates Wynn Las Vegas (www.wynnlasvegas.com) and Wynn Macau (www.wynnmacau.com). Wynn Las Vegas, a luxury hotel and destination casino resort located on the Las Vegas Strip 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 74,000 square feet of retail space. Encore (www.encorelasvegas.com), the new signature resort in the Wynn collection, opened December 22, 2008 (www.encorelasvegas.com). Wynn Macau is a destination casino resort in the Macau Special Administrative Region of the People's Republic of China and currently features 600 deluxe hotel rooms and suites; approximately 205,000 square foot casino; casual and fine dining in five restaurants; approximately 46,000 square feet of retail space; a health club, pool and spa, along with lounges and meeting facilities.
(source: company press release or website)
Why We Like It:
Gambling and casino stocks have been showing relative strength in this market. Some of the big players with exposure to Macau are poised to win big. With the Chinese economy chugging along at full speed more and more Chinese gamblers are choosing to visit the Macau resorts. WYNN just announced this week that its Macau operations posted a 77% rise in profits. Overall investors have been bidding up companies with exposure to discretionary consumer spending. Technically WYNN appears to be in the process of breaking out from a six-month consolidation phase. I am suggesting we use a trigger to buy calls on WYNN at $71.50. If triggered we'll use a stop loss at $69.29. Our first target is $76.50. Our second target is $79.90. Longer-term traders could aim a lot higher.
Trigger to buy calls at $71.50
Suggested Position: BUY CALL APRIL $75 (WYNN 10D75.00) current ask $3.40
Entry on March xxth at $ xx.xx
Earnings Date 05/05/10
Average Daily Volume = 2.7 million
Listed on March 24th, 2010