By Jimmybob - OptionMillionaires.com
Earnings season for option traders can be akin to gambling, and there is no better way to start the season off then with Wynn Resorts, LTD (NASDAQ:WYNN) a developer, owner and operator of destination casino resorts. We have wrote about Wynn Resorts, LTD (WYNN) many times in the past with quite a bit of success. We are now ready to ride Wynn Resorts, LTD (WYNN) for some potential profits on it's earnings report.
Retail traders are always the last to know about a companies performance, and the chart tells the story for Wynn Resorts, LTD (WYNN). Weaker results in Vegas coupled with possible slowdowns with it's Macau unit have propelled the stock into oversold territory. It was only a few months ago when Wynn Resorts, LTD (WYNN) was breaking over $130 on strong volume. Those days are a distant memory as Wynn Resorts, LTD (WYNN) closed at 96.44 today after falling faster then the value of the Peso in the '90s.
When there is blood on the streets, we see green. Any upward guidance or rosy forecast coming from Wynn Resorts, LTD (WYNN) during it's earnings report after hours on Tuesday will result in a potential 10-15%+ spike in the stocks share price. Positioning ahead of that possible move can result in some rather large returns.
We mentioned 105 calls in chat, and will look to grab some more sometime during the day on Tuesday. Lets hope Wynn Resorts, LTD (WYNN) kicks off earnings in style. No need to go all in, but lets at least get some blackjack!
Disclosure: We hold a boatload of the 105 July weekly calls purchased at .52/.55/.62.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in WYNN over the next 72 hours.