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Actionable news in HOG: HARLEY-DAVIDSON Inc,

Why Harley-Davidson Is Still Expensive

No, I am not talking about the actual motorcycle, nor am I talking about the stock. In this article, I am talking about Harley-Davidson's (HOG) options. Almost two weeks ago, I said that the buyout rumor was likely a pump-and-dump instruments and the alleged deal with KKR would unlikely go through. My key argument was the unusual options activity around the stock's short-term options.

Well, the options are still too expensive, according to historical data from optionstrategist.com:

(Source: optionstrategist.com)

One of our fellow contributors recently wrote a great article about analyzing and trading on implied volatility. You can read the article here.

In short, Harley-Davidson's short-term options are currently overpriced as their implied volatility ranks in the 98th percentile in the sample gathered over the last 600 trading days. If you ask me...


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