Bulls quintuple money in $HOG

Harley-Davidson has been riding higher in recent weeks, handing exponential gains to upside option traders.

On May 3>, Investitute’s tracking systems detected the purchase of 10,100 June $40 calls for $1.10 to $1.54 with shares at $39.81. These were clearly new positions, as open interest in the strike was only 85 contracts before the trades occurred.

Those calls sold for $5.90 this afternoon, more than 5 times their initial purchase price. The stock rose 15.4% in the same time period, underscoring how options can far outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

HOG jumped 3.94% today to close at $45.94. The motorcycle icon has rebounded this month with strength in the retail sector and rallied today as concerns over the effect of tariffs subsided.