It's been a winning year for shares of Wynn Resorts (NASDAQ: WYNN).
Casino stocks have suffered severely in the past year, as the Chinese government's crackdown on corruption has driven revenue in Macau to multiyear lows. But some investors may be anticipating a turnaround for Wynn's stock, after the company reported better-than-expected fourth-quarter earnings, and Macau saw its best monthly revenue growth in 20 months.
"This stock has come back from the brink of a pretty serious collapse," Todd Gordon of TradingAnalysis.com said Wednesday on CNBC's " Trading Nation ." From looking at the chart of Wynn's stock, Gordon said it may be starting a new uptrend.
Wynn shares have risen 37 percent in the past month. Casino competitor Las Vegas Sands (NYSE: LVS) has also risen 20 percent in one month.
Read More Trading casino stocks on Macau numbers
Gordon said shares of the casino giant have seen a "double bottom," as well as a break above resistance — signaling to him that the stock will add to its gains. However, he recommended waiting for a pullback to previous resistance at $78 before making a bullish bet on the casino stock.
"If the stock were to break back in the [previous] range, I would say the premise of the trade is incorrect and we want to step to the sidelines," Gordon said.
Wynn's stock rose slightly on Wednesday to $85. For his trade, Gordon is targeting a move back up to $100 per share, by buying the April 85-strike call and selling the April 90-strike call for $1.50 per share (with 100 shares per contract). The strategy is known as a bullish call spread, and is profitable if Wynn shares rise above $86.50 by April expiration. If shares rise above $90, Gordon will make a capped profit of $3.50 per share.
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