Harley-Davidson Inc. (HOG)
HOG publishes earnings on Tuesday before the opening bell.
I shall use the MAY series of options, which trades for the last time 32 days hence, on May 19.
Implied volatility stands at 40%, which is 2.6 times the VIX, a measure of the volatility of the S&P 500 index.
HOG’s IV stands in the 46th percentile of its annual range and the 95th percentile of its most recent broad movement.
The price used for analysis was $60.01.
The premium is 47% of the width of the position’s wings.
The risk/reward ratio is 1.1:1.
Decision for My Account
I have entered a position on HOG as described above. The stock at the time of the entry was priced at $59.99.
By Tim Bovee, Portland, Oregon, April 17, 2017