Wynn Resorts (WYNN) is a company involved in Resorts&Casins industry. Their Fundamentals are not very good. Current price is $65 and it is overvalued.
This is not a stock that personally would have in the long term but this week, they have annunced a special Dividend of $4 for next 3rd December (you must have the stock under property by 19th November).
You can see in next link the complete news of this event:
Strategy to get the Dividend
The target would be to get this special dividend with the lowest possible risk. The problem with this stock is that beta is 2.65, it means it is very volatil, so you must be careful and be ready for adjustments.
If you check the chart of WYNN, you can see that the price can fluctuate a lot in a very short time, going from $75 to $50 in less than a month.
So, a nice strategy would be a Covered Call ATM (if you want more protection you could do it ITM):
– Buy stock at $66.54 or less
– STO SC DIC 65 ($5.45)
CB = $57.09 (dividend included)
Primary Exit: Assignation if price is over $65 on December expiration. We would get max. prof¡t ($7.91 = 11.89% ROI)
Secondary Exit: Close position with a profit if price is between 65 and 60 at expiration
Secondary Exit: if price breaks $60 level, adjust to a Collar trade.
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