September 24, 2020 - MDT Alert (HOG)

Today, I would like to make a suggestion on a stock we have traded in the past.

The stock is Harley Davidson, Inc. (HOG).

HOG is oversold and is trading relatively flat today, as I write this.

It is oversold by virtue of the fact that it is trading right at its lower band on the 60 minute chart.

I would like to suggest a weekly covered call on the stock and use next week's expiration, which is October 2nd.

HOG is trading right at $23.25 as I write this.

Buy HOG at the market and then execute the sale of this call.

Sell to Open (1) October 2nd - $24.00 Call for every 100 shares you own.

You should be able to sell them for $.45 per every option.

If the calls are assigned next Friday, the return will be about 5.2% for seven days.

Based on the nominal portfolio, limit the buy in to 300 shares, which is 7% of the portfolio.