Initiating a new position in Tractor Supply.
music selection: “Riders On The Storm” — The Doors
weigh-in: 207.0 (1.2)
Tractor Supply is a specialty retailer that serves rural communities. It is bucking the death of retail trend with strong sales growth and attractive gross margins. It is also insulated against competition from Amazon. Most of the items it sells are large and heavy and cannot be shipped cost efficiently as one off deliveries. It just doesn’t make any sense to send a wood chipper or fence by UPS.
Today I sold TSCO180209P00080000 for 3.13 a share. The trade will be in force for 25 days and yields an expected 57.12% annualized while enjoying 4.30% downside protection. The two contracts provide 626 in options income which has February shaping up as a good month.
Devour your prey raptors!