Traders Low on the HOG By Rebecca Darst About this article: Some weeks back we noted an increased level of bearish expectation connected to Harley-Davidson being expressed through put spreads in the options market. The positioning occurred shortly before its earnings, and after a Business Week profile of Harley Davidson's zealous courting of subprime borrowers and its exposure to a softening market for big-ticket items like motorcycles. Today, shares in Harley-Davidson have fallen prey to the same concerns, leading to a doubling in option trading volume and opening buying positions in downside puts at successively lower strikes and higher premiums, even as shares have already sunk 13% lower to a new 52-week low at $15.80. Specifically, option traders appear to be bracing for a drop below $10 by Dec. 19, paying 55 cents per contract (120% above yesterday's price levels) to lock in the right to sell Harley shares at $10 by that date. Expanding the view into January,... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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