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.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.