Earlier I noticed some put activity on Wynn Resorts Limited (WYNN) as the stock showed up on today's option skew scan. This marks the second day of traders betting against the stock as it showed up on yesterday's scan as well.

To get a feel for what is going on, I pulled the International Securities Exchange's buy-to-open data for the last 5 days. Over this timeframe there have been a total of 11,185 puts purchased to just 1,178 calls.

If we look to the daily chart below, we see that shares of Wynn Resorts have pulled back to test their late-October lows. The option activity would seem to suggest that some are betting that the double bottom won't hold. This creates an interesting situation for the skeptics to be surprised.

Chart Courtesy of Thomson Financial

Another interesting attribute is that WYNN shares are heavily shorted. As touched on last month this can create a situation of harried buying. According to data collected by our Quantified Analysis group, 28% of the stock's float is sold short.

The big question is whether buyers are willing to step in here and get the ball rolling. This hasn't been a market where support has tended to hold. In fact, that may be what people are betting on. Of course, one trait of the market is that once a pattern has become obvious, it tends not to work. Keep an eye on the late-October lows, this could be interesting...