NEW DIRECTIONAL CALL PLAYS
Tractor Supply Company - TSCO - close: 67.17 change: +0.77
Stop Loss: 64.75
Current Option Gain/Loss: Unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below
Why We Like It:
TSCO is a specialty retailer focused on serving farms and ranches in the U.S.
When the company reported earnings back in July they beat estimates and raised guidance. Since then the stock has continued to rally hitting new all-time highs. The stock just had a 2-for-1 stock split last week. Shares displayed almost no weakness this morning in spite of the widespread market gap down. Instead TSCO has rallied to yet another high.
We like the relative strength here. Today's intraday high was $67.29. I am suggesting a trigger to buy calls at $67.50. It is possible that the $70.00 level could be round-number resistance but we're aiming for $74.00 between now and yearend.
FYI: The Point & Figure chart for TSCO is bullish with an $87 target.
- Suggested Positions -
buy the 2014 Jan $70 call (TSCO1418a70) current ask $2.55
Entry on September -- at $---.--
Average Daily Volume = 440 thousand
Listed on September 30, 2013