Options Traders Dancing to Wynn Stock's Bullish Beat

Wynn Resorts, Limited (NASDAQ:WYNN) is up 3.5% to trade at $105.11 at last check, after the casino giant reported better-than-expected second-quarter earnings and revenue. The company credited the strong results to its Las Vegas and Macau properties, which saw growing hotel bookings, gaming, and dining. In response, Jefferies and Citigroup lifted their price targets on WYNN to $118 and $132.50, respectively. 

Despite the positive price action, the equity is yet to overcome recent pressure from the 40-day moving average, which emerged earlier this month. The $112 region also lingers above as a long-term ceiling, but year-to-date Wynn Resorts stock sports a healthy 28.2% lead.

Short sellers are hitting the exits, with short interest down 13.7% over the last two reporting periods. The 5.69 million shares sold short still make up 5.9% of the equity's available float, though, meaning there is still some pessimism left to unwind.

The options pits show a more bullish beat. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 2.90 sits higher than 99% of readings from the past 12 months. This means long calls have been picked up at a much quicker-than-usual clip.

Drilling down to today's options activity, 10,000 calls and 5,703 puts have been exchanged, which is six times the intraday average volume. Most popular is the weekly 8/11 105-strike call.