Selling WYNN puts for income.
Wynn Resorts (WYNN) benefits from a rebound in both consumer and business travel.
While fears of recession continue to pressure markets, data shows that businesses are putting their employees back on the road for sales calls and conferences.
And wealthy consumers are making up for missed trips during the pandemic.
Investors in WYNN have been concerned about the company’s exposure to Macau — a Chinese-controlled destination that could be challenged by lockdowns and anti-business policies.
At this point, the risks seem to be priced in to the stock, and any surprises will likely be on the positive side.
Shares are moving higher this week, giving us a chance to collect a lucrative payment as the stock rebounds.
By selling the October $62.50 puts near $2.50, we’re able to collect an annualized yield near 41%, while also giving us roughly $3.20 per share in cushion between the current market price for WYNN and our strike price.
- Sell (to open) 1 WYNN October 21st $62.50 put
- Limit: $2.70 or more
- The new position will represent roughly 7.1% of our model.
- Executed 10:23
- SOLD 1 WYNN Oct 21 $62.50 Put @ $2.72