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.

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