GO
Loading...
Live at 2:30p ET
LINDSEY VONN
CNBC.com web-only interview
Downhill skier Lindsay Vonn

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!





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


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)
Accounts Managed by Brian Kelly Capital owns (SLV)
Accounts Managed by Brian Kelly Capital owns (TLT) calls
Accounts Managed by Brian Kelly Capital owns Austrialian dollar
Accounts Managed by Brian Kelly Capital owns new zealand dollar
Accounts Managed by Brian Kelly Capital owns hong kong dollar
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
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSWI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK & URL PLC
Virtus Investment Partners Owns More Than 1% Of (DRYS)

Amelia Bourdeaux
**No Disclosures

Dan Nathan
** No Disclosures on (WYNN)

James Altucher
**No Disclosures

CNBC.com with wires.

Symbol
Price
 
Change
%Change
WYNN
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report