Option Action: Wynn Resorts

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.....

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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For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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Amelia Bourdeaux
**No Disclosures

Dan Nathan
** No Disclosures on (WYNN)

James Altucher
**No Disclosures

CNBC.com with wires.