Along with today’s other put sale of ANDE, I’ve had my eye on Tractor Supply Company for several days. I’ve even placed (unfilled) put sale asks on both over each of the past few days. Each of these candidates have thinly traded option chains with low volumes and wide bid-ask spreads. Today I finally got filled on both.

The reason I’ve been watching TSCO is because it has sold off quite a bit, as you can see in the attached chart. In fact, it has just bounced from a 52-week low following an earnings report that did not meet the market’s expectations. Yet, nothing about the business itself appears to be fundamentally broken . I have held this company in my overall portfolio before and continue to have positive feelings about the business.

Over the last several trading days, a near month-long steep decline in share price has flattened out and begun to slightly increase, while an oversold RSI that fell as low as 14.6(!) has begun to rise well into the 20s and towards a more normal range.

With a delta of .1302, a strike price nearly 2-1/2 dollars below the 52 week low of $29.42 and the apparent support the share price has now found, I don’t expect that these shares will be put to us. However, if that were to occur, we would be getting quite a bargain, with an assigned cost of only $26.73 each. Given that Sure Dividend currently has the fair market value set at $43, this would be a screaming buy, representing just over 62% of estimated fair value.

Because TSCO has a lower share price than most of our put sale candidates, I decided to sell two contracts of it today, versus my more usual one contract.