Options Brief: Wynn Resorts (WYNN)

WYNN – Wynn Resorts, Limited – Investors purchased put options on the owner and operator of casino resorts today with shares of the underlying stock trading 5.80% lower at $80.17 as of 11:25 am (ET). Wynn Resorts’ shares fell as much as 7.76% in morning trading to touch down at an intraday low of $78.49. Investors expecting to see shares of the underlying stock continue to decline in value purchased 1,000 now in-the-money calls at the July $80 strike for an average premium of $3.86 apiece. Put buyers at this strike price are positioned to profit should WYNN’s shares fall another 5.00% from the current price of $80.17 to breach the average breakeven point to the downside at $76.14 by expiration day. Bearish players also picked up another 1,000 puts at the lower July $75 strike for an average premium of $2.04 per contract. Traders long the July $75 strike puts make money if the casino operator’s shares decline 9.00% and slip beneath the effective breakeven price of $72.96 by July expiration. Finally, pessimists fearing sharp share price erosion picked up 1,100 put options at the lower July $70 strike for an average premium of $0.97 apiece. Wynn Resorts’ shares much plunge 13.9% from the current price to trade below the average breakeven point at $69.03 in order for July $70 strike put buyers to start to amass profits. The overall reading of options implied volatility on WYNN jumped 12.6% to 55.89% by 11:40 am (ET).