Market News

November 30, 2016  Wed 8:22 AM CT

An investor is upping the ante in a bullish play on Harley-Davidson.

OptionMonster's tracking program shows that 2,000 December 60 calls were sold for $1.43 to $1.53 while 2,500 Weekly 63 calls expiring on Dec. 30 were purchased for $0.75 to $0.85 yesterday. Volume was below open interest in the nearer-term contracts, indicating that a bullish position was rolled forward by two weeks to a higher strike.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

HOG rose 0.18 percent to $59.92 yesterday and is up 14 percent in the last three months. The motorcycle icon is expected to announce quarterly results in pre-market hours on Jan. 26.

Overall option volume in the name was twice its daily average yesterday. Calls outnumbered puts by a bullish 8-to-1 ratio.

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