The fourth and final trade I made yesterday was selling a Wynn Option. The title of this post fits perfectly. Less than 15 minutes after I sold the Wynn option, the stock took a nosedive and fell below my strike price. This could have been caused by a really bad overall market day, or because WYNN Q3 reporting is right around the corner. My gamble didn’t pay off, well it hasn’t yet.
At any rate, all options are a gamble. I saw an opportunity to make a quick buck selling a WYNN Put.
WYNN Option Details
- Contract length: 3 Days
- Fees :$9.71
- Strike Price: $98.00
- Premium: $1.21
- Annualized Rate of Return: 139.75%
- Potential Profit: $111.29
As shown, when I sold the Wynn option the stock was trading at $99.55. It fell below $97 yesterday and is trading at $96.45 right now. I have 2 days before expiration, so it’s up in the air as to whether I win or lose on this one. I’ve decided to let the stocks assign to me if this contract expires below the strike price.
By doing so, I’ll capture the November dividend. Also, options chains look promising. I’d be happy to sell covered calls on WYNN stock for a while.
What do you think of this trade? Do you own any gaming stocks?