Harley-Davidson Draws Call Buyers

By Pete Najarian, co-founder of OptionMonster

NEW YORK (TheStreet) -- Harley-Davidson (HOG) looked like a runaway bike down a steep mountain not long ago, but consumers may be returning as the economy recovers and luxury spending turns more positive.

At least that seemed to be the case Monday when traders were snapping up Harley-Davidson's November 29 calls in large chunks mostly for 25 cents to 30 cents, according to OptionMonster's real-time tracking systems. More than 6,000 of the contracts traded at nearly five times the open interest and 64 times the average call volume at that strike.

The stock rose 4.4% Monday to close at $28.19. The shares had fallen 14% from their 52-week high on Oct. 21, but have climbed back near that level.

A sizable short interest remains in the stock and could be a catalyst if HOG continues adding to its run. But the calls bought Monday have only four days to go until they expire, and they need to rise some 4% to turn a profit.

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