Earnings Trade of the Day (WYNN) 2.2.2012
Reason I like this Trade: WYNN is a stock that has not moved that much on earnings within the past couple of quarters. As I talked about on Bloomberg during my Interview, it is a sloppy chart and it will not break through the 100 Day Moving Average at $120, I wanted to make a play that it will not have much movement, so I am making an even money bet that this stock will not move the implied 5% move. If you have any questions please email me at [email protected].
UPDATE 2.6.2012 On Friday this trade expired and WYNN closed right at $115 even. I decided to buy the Feb 115 Puts I was short for $.10, so I did not have to determine if I was going to be assigned on those Puts over the weekend or not. When I am short an option and it expires right at the strike, it is a guessing game to know if I get “assigned” on the option over the weekend. If I am LONG the option and it closes at the strike, I determine if I want to exercise the option or not. So, I turned $.10 into $2.45 and the trade is over. Time to move on to the next trade.