NEW DIRECTIONAL CALL PLAYS
Tractor Supply Company - TSCO - close: 124.71 change: +0.99
Stop Loss: 121.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
TSCO is a specialty retailer that focuses on the farm and ranch industry.
Their latest earnings report was bullish with TSCO beating Wall Street's estimates on both the top and bottom line. Management then raised their 2013 guidance. The company has also announced a 2-for-1 stock split set for Friday, September 27th.
Technically shares are in a long-term up trend. On a short-term basis the stock is consolidating sideways below round-number resistance at the $125.00 level. A breakout there could signal a move toward $130-135. I am suggesting a trigger to buy calls at $125.25. If triggered our target is $134.00. More conservative traders may want to take profits near $130 instead.
NOTE: The market could be volatile tomorrow as Wall Street reacts to the August jobs report due out Friday morning. We do not want to launch positions if TSCO gaps open higher than $126.00.
Trigger @ 125.25
- Suggested Positions -
Buy the Oct $130 call (TSCO1319j130) current ask $2.00
Entry on September -- at $---.--
Average Daily Volume = 352 thousand
Listed on September 05, 2013