Buy Alert: December 10, 2012

| December 10, 2012

Buy Alert:  December 10, 2012


Trade Details

Buy Wynn Resorts (WYNN) January 2013 $100 Puts for $1.16 or better



WYNN is a nearly ideal stock for taking a downside position on the market.  For one, the company’s recent earnings have been somewhat disappointing, yet the stock still trades at a rich P/E of 21x.  If the market corrects, overvalued stocks like this one tend to get hit the hardest.

Plus, WYNN is sitting right above the 50-day moving average.  If the stock breaches this level as expected, it could easily fall to the 200-day moving average in a hurry.

Even better, WYNN is a high beta stock.  That means if the market sells off, WYNN should drop even farther.

Basically, I expect WYNN to fall to the 200-day moving average by January expiration.  And, if the market sells off sharply, it could drop significantly more.

Let’s grabs some January puts on WYNN.


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Category: OTW Buy Alerts