Harley Davidson (HOG, news, chart, volatility) puts are active, as it appears that a strategist is closing out a bearish spread after a 22.2 percent month-to-date slide in its shares. On September 30, WhatsTrading.com highlighted a trade involving the February 37.5 puts, February 30 puts, and February 45 calls. According to exchange contacts, the strategy involved the purchase of the February 37.5/30 put spread and sale of 45 calls. Those same contracts are active today, with more than 7,000 of each traded. Now, with the stock falling below the strike price of the put spread, the strategist might be content taking profits, even though considerable time value still remains.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.