I was assigned today shares of TSCO.
music selection: “Love is Alive” — Gary Wright
Back on 16JAN2018, I sold puts on Tractor Supply (TSCO). The company has since released earnings with a beat and upgraded guidance. It wasn’t enough for Wall Street as the price declined several percent on the “good news”. Today, I was assigned early 200 shares at the 80 strike. Shares trade currently at 69.93 and my stop loss is currently at 57.50.
I will remain eligible to collect the 1.38% distribution and am writing covered calls for more income while I wait for price recovery. I expect eventually see a great deal of share growth as this is a great company that is bucking the death of retail trend. I sold TSCO180316C00080000 for 20 cents a share. The trade will be in force for 43 days and yields an expected 2.12% annualized.
It is unfortunate when shares move against me but it is part of the price you pay for a strong and reliable income stream when writing puts.
Devour your prey raptors!