Initial Week of TSCO Options Trading for December 19th
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2025
0mins
Should l Buy TSCO?
Source: NASDAQ.COM
Put Contract Overview: The $50.00 put contract for TSCO has a bid of 10 cents, allowing investors to buy shares at a cost basis of $49.90, which is a 5% discount from the current price of $52.59. There is a 68% chance the contract may expire worthless, offering a potential 0.20% return on cash commitment.
Call Contract Overview: The $60.00 call contract has a bid of 20 cents, enabling investors to sell shares at that price, which represents a 14% premium over the current stock price. If the contract expires worthless, investors keep their shares and the premium, resulting in a potential 0.38% additional return.
Volatility Insights: The implied volatility for the put contract is 39%, while for the call contract it is 30%. The actual trailing twelve-month volatility is calculated at 28%, providing context for the options' pricing.
YieldBoost Concept: The article discusses the concept of YieldBoost, which refers to the additional returns investors can earn from options contracts, highlighting the potential annualized returns from both the put and call contracts.
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Analyst Views on TSCO
Wall Street analysts forecast TSCO stock price to rise
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 32.310
Low
6.92
Averages
59.82
High
70.00
Current: 32.310
Low
6.92
Averages
59.82
High
70.00
About TSCO
Tractor Supply Company is a rural lifestyle retailer in the United States. The Company is focused on supplying the needs of recreational farmers and ranchers. It operates retail stores under the names Tractor Supply Company and Petsense by Tractor Supply. Its stores are located in towns outlying various metropolitan markets and in rural communities. It also offers an expanded assortment of products through the Tractor Supply mobile application and online at TractorSupply.com, Petsense.com, and Allivet.com. The Company's selection of merchandise consists of various product categories, including livestock, equine and agriculture; companion animal; seasonal and recreation; truck, tool, and hardware, and clothing, gift, and decor. Its brands consist of 4health, American Farmworks, Bit & Bridle, Blue Mountain, C.E. Schmidt, Country Lane, Countyline, Country Tuff, Dumor, Farm Table, Groundwork, Huskee, Impeckables, JobSmart, Paws & Claws, Producer’s Pride, Red Shed, Redstone, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Piper Sandler Downgrades Tractor Supply Rating to Neutral
- Rating Downgrade: Piper Sandler has downgraded Tractor Supply (TSCO) from Overweight to Neutral, with analyst Peter Keith highlighting weakening companion animal trends, particularly for dogs, which may face structural headwinds for several years.
- Rising Pet Costs: Keith noted that pet-related costs have surged since 2020, with veterinary services CPI up 60%, pet services pricing (grooming, boarding) up 46%, and pet food prices rising 25%, contributing to a decline in dog ownership relative to cats.
- Earnings Guidance Risk: Keith warned that Tractor Supply may lower its full-year guidance, particularly following weak Q1 results, indicating significant challenges ahead for the company.
- Price Target Set: Piper Sandler set a price target of $36.00 for Tractor Supply, noting that while the 16x multiple is below TSCO's historical average of 22x, the stock traded at a high-teens multiple in 2017 after the 2015-2016 agriculture/energy recession, suggesting an unclear future.
See More
Coca-Cola Raises Dividend for 64th Consecutive Year
- Coca-Cola's Stability: Coca-Cola has raised its dividend for 64 consecutive years, recently increasing its quarterly payout from $0.51 to $0.53, resulting in an annualized dividend of $2.12 and a yield of approximately 2.6%, showcasing the company's robust dividend growth capability.
- Tractor Supply's Appeal: Despite a significant drop in Tractor Supply's stock price over the past year, currently trading around $34, its quarterly dividend yield remains attractive at about 2.7%, and the company reported a 3.6% year-over-year increase in net sales to $3.59 billion in Q1 2026, indicating ongoing business growth potential.
- American Express's Growth Potential: American Express raised its quarterly dividend by 16% in March, from $0.82 to $0.95, with dividends more than doubling over the past five years at an annual growth rate exceeding 17%, while Q1 total revenue rose 11% year-over-year to $18.9 billion, reflecting strong earnings growth momentum.
- Value of Long-Term Investment: Each of these companies offers distinct dividend growth strategies and cash generation capabilities, providing a reliable wealth-building avenue for long-term investors, and despite facing market risks, their dividend growth potential continues to attract income-focused investors.
See More
Top Dividend Growth Stocks for the Next Decade
- Tractor Supply Performance: Despite its stock price dropping from $64 to $34, Tractor Supply achieved net sales of $3.59 billion in Q1 2026, a 3.6% year-over-year increase, while the board raised the quarterly dividend by 4.3% to $0.24 per share, demonstrating its consistent dividend growth capability.
- Coca-Cola's Stability: With 64 consecutive years of dividend increases, Coca-Cola reported a 12% year-over-year increase in net revenue in Q1 2026, alongside an 18% rise in adjusted earnings per share, and raised its full-year earnings growth guidance to 8%-9%, indicating strong business momentum.
- American Express Growth Potential: American Express achieved total revenue of $18.9 billion in Q1 2026, an 11% year-over-year increase, and raised its quarterly dividend by 16% to $0.95 per share, showcasing rapid earnings growth and dividend growth potential, despite a current yield of only 1.2%.
- Foundation for Long-Term Investment: These three stocks each offer unique strengths, with Tractor Supply providing stable dividends, Coca-Cola anchoring with its exceptional dividend history, and American Express attracting investors with rapid dividend growth, collectively forming a reliable foundation for income-focused investors.
See More
Three Dividend Stocks to Hold Forever
- Tractor Supply Performance: Tractor Supply Company (TSCO) reported first-quarter revenue of $3.6 billion, meeting analyst expectations, but its earnings per share of $0.31 fell short of the $0.34 forecast, resulting in a 2.70% drop in stock price, reflecting market concerns about future growth.
- Same-Store Sales Struggles: TSCO's same-store sales growth was only 0.5%, significantly below the expected 1.6%, although the company anticipates a 1% to 3% increase for the year, indicating challenges in a competitive retail landscape.
- Stability of Realty Income: Realty Income (O), a real estate investment trust, owns over 15,511 retail properties with an occupancy rate exceeding 98%, and has raised its quarterly dividend for 114 consecutive quarters, currently offering a dividend yield of 5.1%, providing investors with stable cash flow.
- Verizon's Ongoing Appeal: Verizon Communications (VZ) added 340,000 net postpaid wireless customers in Q1 and expects to gain one million customers by 2026; despite a 1.80% stock decline, its dividend has increased for 19 years, with a yield over 6%, highlighting its attractiveness to income-focused investors.
See More
Tractor Supply Co. Partners with ITG to Cut Marketing Costs by 32%
- Significant Cost Reduction: Tractor Supply Co.'s partnership with ITG has led to a 32% reduction in email marketing costs, achieved through the efficiency of ITG's Storyteq technology, thereby enhancing market competitiveness without increasing budget.
- Enhanced Content Creation Efficiency: With ITG's AI-driven platform, Tractor Supply Co.'s in-house creative teams can spend less time on repetitive content versioning and focus more on core ideas that drive brand growth, improving overall marketing effectiveness.
- Deepening Partnership: The ITG team acts as an extension of Tractor Supply Co., providing guidance on template building and customization, ensuring personalized and automated content, which further enhances collaboration efficiency and market responsiveness.
- Future Savings Potential: ITG's repeatable and scalable model means that Tractor Supply Co. can expect further cost savings in the future, optimizing marketing strategies to adapt to the evolving market demands.
See More
Semiconductor Stocks Overbought Amid Market Rally
- Semiconductor Surge: Semiconductor stocks emerged as a focal point for investors this week, with the S&P 500 and Nasdaq rising 0.55% and 1.50% respectively, pushing the market to new highs and reflecting strong optimism in the sector.
- Overbought Indicators: CNBC Pro's analysis identified stocks with a 14-day RSI above 70 as overbought, indicating potential pullback risks, particularly as the iShares Semiconductor ETF (SOXX) posted an 11.04% gain this week, showcasing robust enthusiasm for chipmakers.
- Earnings Drive: Texas Instruments reported first-quarter earnings that exceeded expectations, highlighting strong demand for its analog chips, which significantly boosted its stock price and reinforced market confidence in the semiconductor industry.
- Narrowing Market Leadership: Cameron Dawson, Chief Investment Officer at NewEdge Wealth, noted that market leadership is increasingly concentrated in the semiconductor sector, indicating a sustained rise in investor focus on this industry, which may impact the performance of other sectors.
See More
Piper Sandler Downgrades Tractor Supply Rating to Neutral
- Rating Downgrade: Piper Sandler has downgraded Tractor Supply (TSCO) from Overweight to Neutral, with analyst Peter Keith highlighting weakening companion animal trends, particularly for dogs, which may face structural headwinds for several years.
- Rising Pet Costs: Keith noted that pet-related costs have surged since 2020, with veterinary services CPI up 60%, pet services pricing (grooming, boarding) up 46%, and pet food prices rising 25%, contributing to a decline in dog ownership relative to cats.
- Earnings Guidance Risk: Keith warned that Tractor Supply may lower its full-year guidance, particularly following weak Q1 results, indicating significant challenges ahead for the company.
- Price Target Set: Piper Sandler set a price target of $36.00 for Tractor Supply, noting that while the 16x multiple is below TSCO's historical average of 22x, the stock traded at a high-teens multiple in 2017 after the 2015-2016 agriculture/energy recession, suggesting an unclear future.
See More
Coca-Cola Raises Dividend for 64th Consecutive Year
- Coca-Cola's Stability: Coca-Cola has raised its dividend for 64 consecutive years, recently increasing its quarterly payout from $0.51 to $0.53, resulting in an annualized dividend of $2.12 and a yield of approximately 2.6%, showcasing the company's robust dividend growth capability.
- Tractor Supply's Appeal: Despite a significant drop in Tractor Supply's stock price over the past year, currently trading around $34, its quarterly dividend yield remains attractive at about 2.7%, and the company reported a 3.6% year-over-year increase in net sales to $3.59 billion in Q1 2026, indicating ongoing business growth potential.
- American Express's Growth Potential: American Express raised its quarterly dividend by 16% in March, from $0.82 to $0.95, with dividends more than doubling over the past five years at an annual growth rate exceeding 17%, while Q1 total revenue rose 11% year-over-year to $18.9 billion, reflecting strong earnings growth momentum.
- Value of Long-Term Investment: Each of these companies offers distinct dividend growth strategies and cash generation capabilities, providing a reliable wealth-building avenue for long-term investors, and despite facing market risks, their dividend growth potential continues to attract income-focused investors.
See More
Top Dividend Growth Stocks for the Next Decade
- Tractor Supply Performance: Despite its stock price dropping from $64 to $34, Tractor Supply achieved net sales of $3.59 billion in Q1 2026, a 3.6% year-over-year increase, while the board raised the quarterly dividend by 4.3% to $0.24 per share, demonstrating its consistent dividend growth capability.
- Coca-Cola's Stability: With 64 consecutive years of dividend increases, Coca-Cola reported a 12% year-over-year increase in net revenue in Q1 2026, alongside an 18% rise in adjusted earnings per share, and raised its full-year earnings growth guidance to 8%-9%, indicating strong business momentum.
- American Express Growth Potential: American Express achieved total revenue of $18.9 billion in Q1 2026, an 11% year-over-year increase, and raised its quarterly dividend by 16% to $0.95 per share, showcasing rapid earnings growth and dividend growth potential, despite a current yield of only 1.2%.
- Foundation for Long-Term Investment: These three stocks each offer unique strengths, with Tractor Supply providing stable dividends, Coca-Cola anchoring with its exceptional dividend history, and American Express attracting investors with rapid dividend growth, collectively forming a reliable foundation for income-focused investors.
See More
Three Dividend Stocks to Hold Forever
- Tractor Supply Performance: Tractor Supply Company (TSCO) reported first-quarter revenue of $3.6 billion, meeting analyst expectations, but its earnings per share of $0.31 fell short of the $0.34 forecast, resulting in a 2.70% drop in stock price, reflecting market concerns about future growth.
- Same-Store Sales Struggles: TSCO's same-store sales growth was only 0.5%, significantly below the expected 1.6%, although the company anticipates a 1% to 3% increase for the year, indicating challenges in a competitive retail landscape.
- Stability of Realty Income: Realty Income (O), a real estate investment trust, owns over 15,511 retail properties with an occupancy rate exceeding 98%, and has raised its quarterly dividend for 114 consecutive quarters, currently offering a dividend yield of 5.1%, providing investors with stable cash flow.
- Verizon's Ongoing Appeal: Verizon Communications (VZ) added 340,000 net postpaid wireless customers in Q1 and expects to gain one million customers by 2026; despite a 1.80% stock decline, its dividend has increased for 19 years, with a yield over 6%, highlighting its attractiveness to income-focused investors.
See More
Tractor Supply Co. Partners with ITG to Cut Marketing Costs by 32%
- Significant Cost Reduction: Tractor Supply Co.'s partnership with ITG has led to a 32% reduction in email marketing costs, achieved through the efficiency of ITG's Storyteq technology, thereby enhancing market competitiveness without increasing budget.
- Enhanced Content Creation Efficiency: With ITG's AI-driven platform, Tractor Supply Co.'s in-house creative teams can spend less time on repetitive content versioning and focus more on core ideas that drive brand growth, improving overall marketing effectiveness.
- Deepening Partnership: The ITG team acts as an extension of Tractor Supply Co., providing guidance on template building and customization, ensuring personalized and automated content, which further enhances collaboration efficiency and market responsiveness.
- Future Savings Potential: ITG's repeatable and scalable model means that Tractor Supply Co. can expect further cost savings in the future, optimizing marketing strategies to adapt to the evolving market demands.
See More
Semiconductor Stocks Overbought Amid Market Rally
- Semiconductor Surge: Semiconductor stocks emerged as a focal point for investors this week, with the S&P 500 and Nasdaq rising 0.55% and 1.50% respectively, pushing the market to new highs and reflecting strong optimism in the sector.
- Overbought Indicators: CNBC Pro's analysis identified stocks with a 14-day RSI above 70 as overbought, indicating potential pullback risks, particularly as the iShares Semiconductor ETF (SOXX) posted an 11.04% gain this week, showcasing robust enthusiasm for chipmakers.
- Earnings Drive: Texas Instruments reported first-quarter earnings that exceeded expectations, highlighting strong demand for its analog chips, which significantly boosted its stock price and reinforced market confidence in the semiconductor industry.
- Narrowing Market Leadership: Cameron Dawson, Chief Investment Officer at NewEdge Wealth, noted that market leadership is increasingly concentrated in the semiconductor sector, indicating a sustained rise in investor focus on this industry, which may impact the performance of other sectors.
See More
