Casino Stock Slides Following Re-Opening Plan

Instinet cut its price target from $117 to $87 this morning, too

Shares of Wynn Resorts Ltd (NASDAQ:WYNN) are down 2.9% to trade at $76.16 this morning, after CEO Matt Maddox over the weekend called for a conditional re-opening plan for the Las Vegas Strip in mid-to-late May. Following the news, Instinet cut its price target from $117 to $87, though it kept its "buy" rating. The analyst, Harry Curtis, cited the anticipated long recovery period for the company.

Wynn has found recent pressure at the $80 day region as it attempts to rebound from its March 18 record low of $35.84, leaving the equity down 45% year-to-date. However, Wynn last week just closed above its 40-day moving average for the first time since late January and is up 49% in the last month.

Analysts are bullish coming into today, with seven "strong buys" and the remaining three sporting a tepid "hold." Meanwhile, the 12-month consensus target price of $115.38 is a 49.6% premium to current levels.

In the options pits, puts have picked up in popularity. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.26 puts have been bought for every call in the past five weeks. This ratio sits in the 99th percentile of its annual range, suggesting the appetite for puts is higher than usual.