A Wynn on the Calendar
I'm looking to do a calendar option spread on Wynn Resorts (WYNN) in front of earnings -- a low-risk way to participate and sell some of the high premium (juice) built into the front strike.
Here's how I'm playing it: The February 1 130 call (expiring Friday) is loaded with premium, a 170 IV. Wynn earnings are this evening, so we expect that sort of high number. By contrast, the February monthly is considerably less, in line with historical averages (28). Wednesday, the Wynn February 1 130 call closed at 0.90, and it may be 1+ this morning. The February monthly 130 call closed at about 1.25 and may be 1.40....143 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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