Bouncing Wynn Shares might be primed for the 'wheel strategy'

In Barry Levinson's classic film Rain Man , Dustin Hoffman's character leans over to his brother in the middle of a blackjack hand with a simple piece of advice: bet two for good, one for bad.

In the case of Wynn Resorts shares, it might be time to bet two for good.

Steve Wynn hasn't exactly been on a winning streak. No longer running his namesake company, he finally sold his 50 Central Park South penthouse after years on the market. WYNN shares haven't really been on a winning streak either. The stock is down more than 27% year-to-date as I write this. It was down more than 46% from the 2025 highs within the past couple of weeks. But it has bounced a bit since then, and perhaps the tables are turning.

Fundamentally, the business is demonstrating exceptional strength, particularly in the United States. Wynn's Las Vegas EBITDA margin has actually surpassed that of its Macau resorts. Recognizing this, management has accelerated capital spending in Las Vegas, where the company's profit has doubled from pre-pandemic levels. Meanwhile, the Asian market is also showing signs of life. Strategic property upgrades in Macau are successfully drawing lucrative premium mass play, which is directly supporting the company's ambitious expansion plans for the Enclave at Wynn Palace.

Wynn, YTD So, how should traders play this setup?

With the next earnings report not scheduled until February, the stock has a clear runway free of binary fundamental catalysts, yet implied volatility remains surprisingly high. This environment makes buying options expensive and short premium strategies more attractive.

Disclosures: Tidal owns/holds all the securities mentioned in the article.

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