After you receive this post, we will be buying 75 shares of Wynn Resorts (WYNN) at roughly $88.18. Following the trade, WYNN will represent 3.1% of the Charitable Trust.

As a reminder, we will always wait 45 minutes after we publish a trade alert before executing the trade. By waiting, we presume that Investing Club members will receive a better price in the market than what we do.

Reason behind the trade:

We are adding to this position because we think the broad rally in Chinese tech stocks, like Alibaba, is positive to the sentiment around Wynn Resorts. Taking a step back, Chinese tech stocks and Macao gaming operators traded in a near synchronous decline over the past several months on concerns of increased regulation by the Chinese government. But in the past week, shares of Alibaba and other Chinese tech stocks have rallied on the view that such regulatory pressures may have overshot to the downside. In other words, not as bad as feared.

If Chinese tech stocks can rally right here, we think shares of Wynn Resorts can too. We believe the regulatory challenges the company is experiencing will also be considered not as bad as feared, and Macao, which represented about 75% of 2019 EBITDA, is worth much more than what the market has valued it with the company’s stock trading in the mid-$80s.

We felt more confident about Wynn Resorts' position in Macao after CEO Matthew Maddox appeared on “Mad Money” a few weeks ago. Mr. Maddox reiterated how Wynn Resorts has always been a great corporate citizen in Macao, employing a huge number of locals and investing in the community. Also, Mr. Maddox did not sound like the company was caught off-guard by the recent announcements in the region, saying that he thinks “what’s going on in Macao is not punitive, it’s practical.”

Vegas booking spike:

Meanwhile, we believe Wynn’s properties in Las Vegas and Boston are performing exceptionally well and should continue to do so with COVID-19 cases well past their peak levels in the United States. The upcoming return of international travelers from the United Kingdom and Europe represents yet one more tailwind for Vegas too. Wynn Resorts experienced a spike in booking rates shortly after it was announced that vaccinated travelers can enter the United States.

Lastly, we believe Wynn Interactive is a highly underappreciated asset and has the potential to be a real player in the $45 billion North American sports betting and iGaming market.

The CNBC Investing Club is now the official home to my Charitable Trust. It’s the place where you can see every move we make for the portfolio and get my market insight before anyone else. The Charitable Trust and my writings are no longer affiliated with Action Alerts Plus in any way.

(Jim Cramer's Charitable Trust is long WYNN)