Tony Zhang On How To Play Pullback In Wynn Resorts As A Reopening Trade

On CNBC's "Options Action," Tony Zhang said he wants to take a look at this week's pullback in Wynn Resorts, Limited WYNN as a way to get in on the reopening trade.

The stock has been an underperformer since 2018, but over the past four weeks, it started to break above the downtrend. Zhang sees that as a signal of a potential reversal and he wants to use options to make a bullish bet.

Zhang wants to buy the May $135/$155 call spread for a net debit of $6.85, which is only about 5% of the underlying price. The trade breaks even at $141.85 and it can maximally make a profit of $13.15.