Why Options Trader Betting On Near-Term Upside In Melco Resorts & Entertainment

Shares of Wynn Resorts, Limited WYNN gained on Tuesday after Wells Fargo upgraded the stock from Equal-Weight to Overweight and raised the price target from $74 to $101.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Melco Resorts & Entertainment Limited MLCO traded at 4x average daily options volume on Tuesday.

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There was a buyer of 50,000 of the January 14 calls at an average price of $0.33 per contract, Khouw mentioned.

The trader is making a $1.65 million bet on near-term upside in Melco’s stock.

Price Action: Shares of Wynn Resorts gained 3.8% to close at $85.61 on Tuesday, while Melco Resorts shares surged 4.2% to $11.98 during the session.

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