Spreading the Love
Wynn Resorts (WYNN) is the other name on my earnings list today. I am long July 20 $100-$105 call spreads, which I was able to buy at $0.88.Wynn Resorts (WYNN) Source: StockCharts.com View Chart » View in New Window »
This one is everything Wynn stands for: a game of chance. Wynn shows risk to the downside if it loses $96. In fact, if Wynn's share price falls under $96, I believe it will ultimately drop toward an 8-handle before recapturing $100, assuming it recovers. The upside looks capped at $101 initially, but Wynn has this habit of overshooting, so I believe a quick trip to $104 is possible, but I hesitate to say it can remain there. Instead, I would stick with my thesis of quick trades and start taking this one off the table in the $101 to $102 area and scaling out. There isn't much of a stop here, since I don't expect any value to remain if Wynn falls after earnings....165 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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.