January 2026 Options Now Available For Tractor Supply (TSCO)

Stock Options Channel highlights two income-generating option plays on Tractor Supply Co. (TSCO, $53.12): selling the Jan 2026 $49 put (bid $0.60) would obligate purchase at $49 with a net cost basis of $48.40 (≈8% below current price), has a 73% chance to expire worthless and yields 1.22% (8.94% annualized) if it does; selling a Jan 2026 $58 covered call (bid $0.40) on shares bought at $53.12 would cap gains at $58 but produce a 9.94% total return if called, has a 67% chance to expire worthless and would boost returns by 0.75% (5.50% annualized) if it does. Implied volatility on the put and call are 48% and 40% respectively versus a trailing 12‑month realized volatility of 28%, indicating relatively rich option premiums; investors should weigh assignment risk or forfeited upside against these income-enhancement opportunities.

Analysis

The article presents two income-oriented option strategies on Tractor Supply Co. (TSCO), trading at $53.12: selling the Jan 2026 $49 put (bid $0.60) would obligate purchase at $49 with an effective cost basis of $48.40 and is out-of-the-money ~8%, with Stock Options Channel estimating a 73% chance it expires worthless and a one-time yield of 1.22% (8.94% annualized) if it does. The covered-call alternative is selling the Jan 2026 $58 call (bid $0.40) after buying shares at $53.12, capping upside at $58 (≈9% premium) and providing a 9.94% total return if called or a 0.75% immediate premium (5.50% annualized) if the call expires worthless; Stock Options Channel places that likelihood at 67%. Implied volatilities are elevated relative to trailing realized volatility — 48% on the put and 40% on the call versus 28% realized over the trailing 12 months — indicating relatively rich option premiums and compensation for tail or directional risk. Key trade-offs are assignment risk on the put, forfeited upside on the covered call, and sensitivity of returns to IV contraction; the vendor will track changing odds and contract histories on its contract detail pages, which investors should monitor before and after initiating positions.

Key Decisions for Investors

• Consider selling the Jan 2026 $49 put only if you are comfortable owning TSCO at an effective $48.40 and accept the ~27% chance of assignment while pocketing a 1.22% premium (8.94% annualized),
• If you already own TSCO, consider writing the Jan 2026 $58 covered call to generate a 0.75% immediate premium (5.50% annualized) and a 9.94% capped upside if called, while acknowledging substantial upside forfeiture if shares rally,
• Monitor the put/call implied vols versus realized volatility and the odds tracked by Stock Options Channel; tighten sizing or hedge if implied volatility compresses or if the published odds of expiry worthless move materially against your position