Wynn (WYNN) shares recently touched $100 and a name we highlighted in late August just under $60 with one of our favorite signals for getting long a name, a long-dated put seller in size. The seller of those puts can buy them back for a 72% gain already.

We wrote:

“Wynn Resorts (WYNN) with a large trade on 8/22 showing longer-term confidence as 1070 January 2024 $57.50 puts were sold to open at $11.20 to $11.40 bids. WYNN has also seen a lot of put selling in January $60 and $55 strikes as well as having January $85 short puts in open interest.  WYNN saw a large buy of 1500 January $65 calls on 6/17 for $940K and 1000 March $85 calls on 8/17 for $390K. WYNN shares sold off the past week and closed Monday below the 8, 21 and 55 day moving averages but a potential inverse head and shoulder pattern forming with support near $58. WYNN’s rally off lows recently failed right at trend resistance so a move above last week’s high would be a bull signal and a long weekly falling wedge pattern has formed. WYNN is a preeminent designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming establishments. WYNN also has 72% ownership of Wynn Macau. Wynn Interactive’s subsidiary operates the digital sports betting app, WynnBET, which is currently operational in New Jersey, Colorado, Michigan, Virginia, Indiana, Arizona, Tennessee, New York, and Louisiana. WYNN has a $7B market cap and trades 10X FY23 EBITDA and 3.5X Cash. WYNN forecasts see revenues rising 40.5% in 2023 with 100%+ EBITDA growth as the Macau markets come off a trough and could set up for multiple expansion across the casino group. WYNN is coming off a quarter that saw record EBITDA margin, record slot handle in Wynn, record non-baccarat table Wynn, record hotel revenue and record revenue from restaurants and bars. WYNN also noted its forward bookings continue to pace at pre-COVID levels on substantially higher ADRs. Encore has been performing very well in Boston and WYNN sees potential for a significant catalyst for WynnBET in Massachusetts both in digital and retail sports betting. WYNN also has a major project underway in the UAE where it sees an ability to build robust gaming and non-gaming businesses. Analysts have an average target of $82 with short interest high at 10% of the float. Deutsche Bank remained positive after the quarter while lowering its target to $85.”