Market Overview

Tractor Supply: Off the Charts

Tractor Supply Company (NASDAQ: TSCO), an operator of retail farm and ranch stores in the United States, was halted from trading this morning pending new news and, wow, what news it was. The company unexpectedly raised guidance by no small amount: estimating EPS of $0.22-0.24, up from $0.01. They also raised yearly profit projections to $3.48-3.60 and its sales expectations to $3.44 billion-$3.5 billion. All new metrics surpassed both previous company expectations and Street analysts’ numbers handily.

Tractor Supply Company is trading at a fresh 52-week high today, hitting $67.88 before retreating to its current level of $66.90, up 8.82% on the session. This large gap higher puts TSCO very bear an all-time high as well, where the stock should encounter resistance. I would consider selling a strangle in May or July to take advantage of what should be a sideways trending stock, while hedging myself by buying a little stock.

Posted-In: Guidance Options Movers Trading Ideas

 

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