Harley-Davidson (NYSE: HOG) volatility at 29 as the company announced it reduces motorcycle shipment & EPS guidance.
HOG is recently trading at $48.80 in pre-open trading, below its close of $54.09. HOG lowered motorcycle shipment and financial guidance. HOG sees 2007 EPS of $3.69-$3.77 vs. consensus of $4.12. Jim Ziemer, CEO of HOG, says ,"this is a difficult time for the U.S. consumer." HOG September option implied volatility of 29 was near its 26-week average of 27 according to Track Data, suggesting slightly larger price risks.
Market Vectors Gold Miners ETF (AMEX: GDX) volatility elevated as gold trades above $700.
GDX seeks to replicate the performance of gold and silver mining companies represented in the Amex Gold Miners Index. GDX closed at $40.95. Gold is up 0.33% to $706.90 according to Bloomberg. GDX option volume of 20,596 contracts was heavy on 9/6/07. GDX over all option implied volatility of 37 is above its 26-week average of 32 according to Track Data, suggesting larger risk.
General Motors (NYSE: GM) October volatility up into UAW 9/14 contract deadline.
GM closed at $31.07. The UAW's current four-year contract with all three automakers is set to expire on September 14. Goldman Sachs says, "cutting estimates, target goes to $37; retain Buy on UAW talks." GM September option implied volatility is at 43; October is at 47; above its 26-week average of 41 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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