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Early assignment Tractor Supply (TSCO)

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!

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