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Option Action: Wynn Resorts

Monday, 6 Jun 2011 | 5:48 PM ET

Considering shares of Wynn Resorts are up 36% ytd and 90% in the last year, how should you game this stock?

If you think the market is in a corrective phase and the stock is ahead of itself rather than going short, Options Action investor Dan Nathan suggests looking at a put spread to limit your risk.

Here’s what he recommends:
Buy the Aug 135 / 120 Put spread for 4.00
-Buy Aug 135 put for 6.60
-Sell Aug 120 Put at 2.60

Break-Even on Aug Exp:
Downside: 131...btwn 131 and 120 make 11, below 120 make full 11.00
Upside: stock above 135 lose all 4 or ~3% of the underlying.....

Options Action: WYNN Resorts
Dan Nathan, says Wynn Resorts' revenues are expected to grow 20% this year largely on the back of growth in Asia.

Get all the details. Watch the video now!





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Trader disclosure: On June 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Weiss owns (TWM); Weiss owns (SDS); Weiss owns (JPM); Weiss owns (QCOM); Weiss owns (COP); Weiss owns (DVN); Weiss owns (HK); Weiss owns (AKAM); Weiss owns (BRCM); Weiss owns (HBAN); Weiss is short (SHAW); Weiss is short (SLR); Weiss is short (SWLT); Weiss is short (X); Najarian Owns (ACI); Najarian Owns (AAPL); Najarian Owns (GE); Najarian Owns (C); Najarian Owns (MS); Najarian Owns (MSFT); Adami owns (AGU); Adami owns (C); Adami owns (INTC); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL)

Brian Kelly
Accounts Managed by Brian Kelly Capital owns (GLD)
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Accounts Managed by Brian Kelly Capital owns (IWM) puts
Accounts Managed by Brian Kelly Capital owns (USO) puts

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
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Amelia Bourdeaux
**No Disclosures

Dan Nathan
** No Disclosures on (WYNN)

James Altucher
**No Disclosures

CNBC.com with wires.

  Price   Change %Change
WYNN
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