A Long WYNNded Trade
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A Long WYNN'ded Trade

Henry Gambell
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The Tuesday before options expiration is usually the last day I'll even consider taking a strictly long call or put position in any front month option. Wednesday we'll begin to focus on pinning and other expiration strategies, but today I'm taking a look at a play for November. Wynn Resorts (WYNN) doesn't need an introduction as to what market they're in or how they make their money. This trade is based solely off fundamentals. 

On a weekly chart we have a long squeeze that is just starting to fire off.  This is telling us that the Bollinger Bands are starting to pop out of the Keltner Channels and we can be looking for some volatility in the coming weeks. We're clearly above our 50 period EMA (red) and our 200 period EMA (white), not to mention the obvious uptrend. All of these technical indicators signal a long for me and I expect for this stock to go on and test it's August '08 highs.

Trade described: Buy To Open NOV 95 WYNN Call

Positions at time of publication: None

Symbol WYNN
Action (Buy to open/Buy to close/Sell to open/Sell to Close Buy to Open
No. of contracts (where applicable) 1
Expiration month NOV 2010
Strike price 95
Type (Stock/Call/Put) Call
Trade price $11.90
Spread (better than/none xxxxxxxxxxx
Position? None
Chart Source? TS & TOS
Stop $97.00
Target

$115.00




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