Does Wynn Resorts Stock Come With A 'Zero Premium Call Option' On Macau?

Wynn Resorts Ltd WYNN shares were on the move Monday after Macau officials signaled COVID-19 travel restrictions could be lifted.

Despite Monday's surge, one investor saw significantly more upside in the beaten-down casino operator.

What To Know: For the first time in nearly three years, mainland travelers and permit group tours were set to resume in China's special administrative region. Currently, Chinese tourists to Macau were required to book a visa appointment, which was followed by an approval process that could last up to a week.

Cerity Partners' Jim Lebenthal owns Wynn shares and planned to hold despite Monday's strong march higher as he believed the company remained heavily undervalued.

"I've thought for quite some time that it should trade around $100 just based on the U.S. operations, which continue to go gangbusters," Lebenthal said Monday on CNBC's "Fast Money Halftime Report."

The problem was perpetual recession fears were weighing on the stock and causing continued weakness, he said. 

"If you believe what I just said, then that would imply that the Macau operations are a zero premium call option based within the stock," Lebenthal said.

He told CNBC Wynn Resorts stock had further upside even without taking Macau into consideration. Lebenthal noted he planned to continue holding shares of Wynn as he was more optimistic about the U.S. economy than most.

"I think there's more room to run here," Lebenthal said.

See Also: This Is What Whales Are Betting On Wynn Resorts

WYNN Price Action: Wynn Resorts has a 52-week high of $99 and a 52-week low of $50.20.

The stock was up 12.03% at $66.84 Monday afternoon at publication, according to Benzinga Pro.

Photo: Macau via Shutterstock