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Last night after the close, motorcycle producer Harley-Davidson (HDI – 43-1/4) announced third-quarter earnings per share of 27 cents, topping analysts' estimates by a penny per share. Additionally, HDI officials said that sales in the third quarter climbed by nearly 16 percent.
This news notwithstanding, the equity has declined sharply today, shedding seven percent and breaking through support at its 20-week moving average. HDI has not traded below this trendline since late June.
Yesterday, HDI saw above-average activity in its options pit, as nearly 900 contracts changed hands on the October 45 put. This boosted open interest at the front-month strike from 991 to 1,951 contracts. This is now the site of heaviest put open interest on HDI.