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Newmont (TSX:NGT,NYSE:NEM) announced the sale of its Cripple Creek & Victor mine in Colorado, US, to SSR Mining (TSX:SSRM,NASDAQ:SSRM) for up to US$275 million, continuing its ongoing restructuring efforts.

Under the terms of the deal, Newmont will receive US$100 million in cash upon closing, with an additional US$175 million contingent on regulatory approvals and conditions related to the Carlton Tunnel.

Newmont has agreed to bear 90 percent of potential closure costs exceeding US$500 million under a future regulator-approved closure plan. The transaction is expected to close in the first quarter of 2025.

For the better part of the year, Newmont has prioritized divesting its non-core assets to focus on its Tier 1 gold and copper operations. It is aiming to achieve up to US$3.9 billion in proceeds through asset sales and other liquidations.

Recent sales include the Telfer operation and a majority stake in the Havieron project for up to $475 million, alongside divestitures of the Akyem, Musselwhite and Éléonore operations. The company has also raised US$527 million through sales of other investments, including its Lundin Gold (TSX:LUG,OTCQX:LUGDF) stream credit facility.

In tandem with these divestitures, Newmont is implementing widespread organizational changes, including layoffs and a consolidation of its global business units. The company recently announced the dismissal of several senior managers, including an executive, as part of efforts to align its operational structure with its strategic priorities.

In addition, five standalone business units are being merged into three, eliminating divisions overseeing operations in Australia and Africa and integrating them with those managing North America and East Asia.

These changes come after Newmont’s acquisition of Newcrest Mining in 2023, which added significant gold and copper assets to its portfolio. The restructuring aims to reduce redundancy and optimize the organization for long-term success.

The overhaul also responds to challenges highlighted in Newmont’s third quarter report, which reveals rising costs at the company’s mines in Australia, Canada and Peru.

Despite a 30 percent increase in the gold price this year, Newmont’s share price performance has been modest, prompting internal reviews and discussions with investors about the company’s current approach.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Investor Insight

Mount Hope Mining’s strategic location in the prolific and resource-rich Cobar Basin, which has seen increased activity in recent years, signifies the company’s compelling investment proposition.

Overview

Mount Hope Mining (ASX:MHM) is an Australian resource company specializing in copper and gold exploration. With its flagship project located in the Cobar Basin of New South Wales, Australia, the company leverages the region’s rich mining history and underexplored potential. On August 30, 2024, Mount Hope transitioned to a public company to attract investments for its ambitious mineral exploration goals.

Mount Hope Mining’s acquisition of Fisher Resources, a wholly-owned subsidiary of Unico Silver Limited, has provided it with full control over the Mount Hope project. This project spans four tenements covering approximately 175 square kilometers, located in the southern Cobar Basin, a region with a longstanding history of copper and gold mining dating back to the 1870s.

The Cobar Basin has seen a flurry of significant mining activities in recent years, underscoring the region’s robust potential for polymetallic resource development. In August 2024, Polymetals Resources (ASX:POL) finalized the acquisition of the Endeavor Mine, located 40 kilometers north of Cobar, which boasts JORC-compliant resources of 16.3 million tonnes grading 8 percent zinc, 4.5 percent lead, and 84 grams per ton (g/t) silver. In 2023, Metals Acquisition (NYSE:MTAL) successfully acquired the CSA copper mine from Glencore, further signalling the growing investment attractiveness of the Cobar Basin as a major hub for copper production.

These activities highlight a dynamic and competitive landscape that Mount Hope Mining can leverage for its own exploration strategy.

The strength and vision of Mount Hope Mining’s leadership are critical to its success. The company boasts an experienced and dynamic board and management team, each member bringing a wealth of expertise in mineral exploration, corporate governance, and strategic planning. Their collective experience in mining, resource development, and financial oversight ensures the company is well-equipped to meet its objectives.

Company Highlights

  • Mount Hope Mining is a copper and gold exploration company based in Australia
  • The company holds 100 percent ownership of the Mount Hope project in the prolific Cobar Basin, comprising four tenements spanning 175 sq km
  • The Cobar Basin has long history of copper and gold mining dating back to the 1870s, and recently experiencing increased M&A activity.
  • Mount Hope has identified key zones of interest within the project and will be the target for near-term phased exploration
  • The company’s experienced and dynamic board and management team, bring a wealth of expertise in mineral exploration, corporate governance, and strategic planning.

Key Project

Mount Hope

The Mount Hope project is Mount Hope Mining’s flagship exploration initiative, located in the southern Cobar Basin of New South Wales, Australia. This project spans approximately 175 square kilometers across four granted exploration tenements: EL6837, EL8058, EL8290 and EL8654. The region is historically significant for its rich copper and gold deposits and has contributed substantially to Australia’s mining output since the 1870s. Despite its long-standing mining heritage, the southern Cobar Basin remains underexplored, presenting a unique opportunity for Mount Hope Mining to utilize modern exploration techniques to uncover untapped resources.

The project area encompasses several historical mining sites, including the Mount Hope, Comet and Great Central copper mines, alongside the Mount Solitary and Solar gold mines. These sites, although historically productive, have seen limited contemporary exploration, leaving substantial potential for discovering residual and new deposits.

Geology and Targets

The Mount Hope project is characterized by volcanic and sedimentary sequences with structural features conducive to hosting polymetallic deposits, particularly copper and gold. Fault zones and folding within the tenements act as pathways for mineralization, creating promising exploration targets.

Mount Hope Mining has identified key zones of interest within the project area, including Mount Hope East, Black Hill, Main Road East, Little Mount Solitary, and the Mount Solitary to Solar Trend. These targets are prioritized for exploration based on historical mining data and geophysical anomalies. The company plans to implement a phased approach to exploration, beginning with geophysical and geochemical surveys to refine target zones, followed by drilling campaigns to confirm mineralization and assess the economic viability of the deposits.

Strategic Location

The Mount Hope project benefits from its strategic location within the Cobar Basin, an established mining district with access to infrastructure and services. The recent resurgence of mining activity in and around the Cobar Basin, as demonstrated by Polymetals Resources’ acquisition of the Endeavor mine, and Metals Acquisition’s purchase of the CSA copper mine, underscores the region’s significance as a hub for resource development.

Mount Hope Mining aims to build on this momentum, leveraging both historical data and cutting-edge exploration methodologies to maximize the project’s potential. With its focus on copper and gold, commodities essential to green technologies and global markets, the Mount Hope project is well-positioned to contribute to the growth of Mount Hope Mining and the broader Australian resource sector.

Management Team

Fergus Kiley – Managing Director and CEO

Fergus Kiley plays a pivotal role in driving Mount Hope Mining’s exploration and growth strategies. He previously served as Senior Geologist and Technical Business Development Lead at Wyloo, one of Australia’s largest private natural resources investment groups. This role honed his expertise in exploration, geological modeling and project evaluation. Kiley also serves on the board of Grand Gulf Energy (ASX:GGE) and has over a decade of experience managing exploration programs for various ASX-listed companies. His leadership at Mount Hope focuses on leveraging modern exploration techniques and building partnerships to unlock the potential of the Mount Hope project.

Ben Phillips – Non-executive Chairman

Ben Phillips provides strategic oversight and governance to Mount Hope Mining. Appointed on July 5, 2024, he plays a vital role in ensuring the board operates effectively and aligns with the company’s objectives. Phillips’ leadership in other ventures and his focus on strong corporate governance bring additional credibility to Mount Hope’s public presence. His insights into the mining sector and his strategic vision position the company for sustainable growth.

Todd William – Non-executive Director

Todd Williams brings significant expertise in mining exploration and operations, particularly within the Cobar Basin. He is currently the managing director of Unico Silver (ASX:USL) and a Non-executive director of Orpheus Uranium (ASX:ORP). As the former owner of the Mount Hope project through Unico, William’s historical knowledge of the tenements is an invaluable asset. His extensive work in the region strengthens Mount Hope’s technical and operational strategies.

This post appeared first on investingnews.com

The Tokyo government plans to introduce a four-day workweek for its employees in an attempt to support young families and boost record-low fertility rates nationwide.

Tokyo Governor Yuriko Koike announced that starting in April, employees of the metropolitan government will have the option to take three days off each week.

“We will review work styles … with flexibility, ensuring no one has to give up their career due to life events such as childbirth or child care,” she said in a policy speech at the Tokyo Metropolitan Assembly’s fourth regular session.

The new policy is designed to encourage Japanese couples to have children at a time when the country’s fertility rate is at a record low. Last year, it dipped to a mere 1.2 children expected per woman during her lifetime, even with the government’s increased efforts to motivate young people to start families, according to the Ministry of Health, Labor and Welfare. That number should be at least 2.1 for a population to remain stable.

Koike announced an additional policy allowing parents with children in elementary schools to trade off a bit of their salaries for the option to clock out early.

“Now is the time for Tokyo to take the initiative to protect and enhance the lives, livelihoods and economy of our people during these challenging times for the nation,” she said.

Only 727,277 births were recorded in Japan last year, according to the Health, Labor and Welfare Ministry. That may be in part because of Japan’s overtime work culture, which often pressures women to choose between having careers or families. The gender gap in the country’s labor force participation is higher than in other high-income nations, at 55% for women and 72% for men last year, according to the World Bank.

However, implementing a four-day workweek may provide government employees with more time to dedicate to raising their families.

In a 2022 series of global trials coordinated by 4 Day Week Global, a nonprofit organization, various companies took part in a four-day workweek pilot program.

More than 9 out of 10 employees who participated in the trials wanted to continue with the four-day workweek. They reported that it gave them improved physical and mental health and work-life balance and increased general life satisfaction. Measures of their stress, burnout, fatigue and work-family conflict all declined. Those participants rated their experience 9.1 out of 10.

Another Asian country put a shortened work week to the test this year.

Singapore introduced new guidelines requiring all firms to consider employee requests for flexible working arrangements, including four-day workweeks or staggered hours.

This post appeared first on NBC NEWS

China on Monday accused U.S. chipmaker Nvidia of violating its anti-monopoly law, a move likely to escalate already tense trade relations between the two countries as President-elect Donald Trump prepares to take office for a second time.

China’s state market regulatory arm said the probe is related to Nvidia’s 2019 acquisition of Mellanox, a global supplier of computer networking equipment.

China had conditionally approved that acquisition in 2020.

In a statement, Nvidia said it was ‘happy to answer any questions regulators have’ about its business.

“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,” the company said. “We work hard to provide the best products we can in every region and honor our commitments everywhere we do business.”

The company’s shares were down roughly 3% after markets opened Monday.

Last week, the outgoing Biden administration announced a fresh set of export controls on U.S.-made semiconductors designed to limit China’s ability to use them to develop weapons and advanced artificial intelligence systems.

China immediately responded by accusing the U.S. of bullying and hypocrisy while issuing embargoes on critical materials to the U.S.

“The U.S. preaches one thing while practicing another, excessively broadening the concept of national security, abusing export control measures, and engaging in unilateral bullying actions. China firmly opposes such actions,” the Chinese Commerce Ministry said in a statement last week.

The U.S. and France have also opened investigations related to Nvidia’s market dominance, though on different grounds.

In the past year, the Santa Clara-based company, whose chips have become the processor of choice for tech firms leading the AI revolution, has powered the entire U.S. stock market higher. In 2024, Nvidia’s share price has nearly tripled, making it one of the most valuable firms in the world.

Trump has promised to levy stiff tariffs on China when he takes office. He recently picked former Sen. David Perdue of Georgia, whom a Chinese think tank has accused of being ‘anti-China,’ for U.S. ambassador to China. He also tapped economist Peter Navarro, who favors tariffs, as trade and manufacturing adviser.

This post appeared first on NBC NEWS

OpenAI said Monday it’s releasing its buzzy AI video-generation tool, Sora, later in the day.

The AI video-generation model works similarly to OpenAI’s image-generation AI tool, DALL-E: A user types out a desired scene, and Sora will return a high-definition video clip. Sora can also generate video clips inspired by still images and extend existing videos or fill in missing frames. The Microsoft-backed artificial intelligence startup, which burst into the mainstream last year thanks to the viral popularity of ChatGPT, introduced Sora in February.

It’ll debut to U.S. users as well as to “most countries internationally” later today, according to OpenAI’s YouTube livestream, and the company has “no timeline” yet for launching the tool in Europe and the U.K., as well as some other countries.

OpenAI said users don’t need to pay extra for the tool, which will be included in existing ChatGPT accounts such as Plus and Pro. Employees on the livestream and OpenAI CEO Sam Altman demonstrated features like “Blend” (i.e., joining two scenes together at the user’s direction), as well as the option to make an AI-generated video endlessly repeat.

Until now, Sora has mainly been available to a small group of safety testers, or “red-teamers,” who test the model for vulnerabilities in areas such as misinformation and bias.

Reddit users asked OpenAI executives in October about Sora’s release date, questioning whether it was being delayed “due to the amount of compute/time required for inference or due to safety.” In response, OpenAI’s product chief Kevin Weil wrote, “Need to perfect the model, need to get safety/impersonation/other things right, and need to scale compute!”

“We obviously have a big target on our back as OpenAI,” Rohan Sahai, OpenAI’s Sora product lead, said on the livestream, adding that the company needs to prevent illegal use of the technology. “But we also want to balance that with creative expression.”

OpenAI closed its latest funding round in October at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and Big Tech companies. It also received a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion.

It’s all part of a serious growth plan for OpenAI, as the Microsoft-backed artificial intelligence startup battles Amazon-backed Anthropic, Elon Musk’s xAI, Google, Meta, Microsoft and Amazon for the biggest slice of the generative AI market, which is predicted to top $1 trillion in revenue within a decade.

Earlier this month, OpenAI hired its first chief marketing officer, indicating plans to spend more on marketing to grow its user base. And in October, OpenAI debuted a search feature within ChatGPT that positions it to better compete with search engines like Google, Microsoft’s Bing and Perplexity and may attract more users who otherwise visited those sites to search the web.

With Sora, the ChatGPT maker is looking to compete with video-generation AI tools from companies such as Meta and Google, which announced Lumiere in January. Similar AI tools are available from other startups, such as Stability AI’s Stable Video Diffusion. Amazon has also released Create with Alexa, a model that specializes in generating prompt-based short-form animated children’s content.

Video could be the next frontier for generative AI now that chatbots and image generators have made their way into the consumer and business world. While the creative opportunities will excite some AI enthusiasts, the new technologies present serious misinformation concerns as major political elections occur across the globe. The number of AI-generated deepfakes created has increased 900% year over year, according to data from Clarity, a machine learning firm.

OpenAI has made multimodality — the combining of text, image and video generation — a prominent goal in its effort to offer a broader suite of AI models.

News of Sora’s release follows protestors’ decision to leak what appeared to be a copy of Sora over concerns about the ChatGPT maker’s treatment of artists.

Some members of OpenAI’s early access program for Sora, which it said included about 300 artists, published an open letter in late November critiquing OpenAI for not being sufficiently open or supporting the arts beyond marketing.

“Dear corporate AI overlords,” the protestors’ open letter stated, “We received access to Sora with the promise to be early testers, red teamers and creative partners. However, we believe instead we are being lured into ‘art washing’ to tell the world that Sora is a useful tool for artists.”

The letter added that hundreds of artists provided unpaid labor for OpenAI through bug testing and feedback on Sora, and that “while hundreds contribute for free, a select few will be chosen through a competition to have their Sora-created films screened — offering minimal compensation which pales in comparison to the substantial PR and marketing value OpenAI receives.”

“We are not against the use of AI technology as a tool for the arts (if we were, we probably wouldn’t have been invited to this program),” the open letter stated. “What we don’t agree with is how this artist program has been rolled out and how the tool is shaping up ahead of a possible public release. We are sharing this to the world in the hopes that OpenAI becomes more open, more artist friendly and supports the arts beyond PR stunts.”

In late November, an OpenAI spokesperson responded to the protestors’ actions in a statement to CNBC.

“Hundreds of artists in our alpha have shaped Sora’s development, helping prioritize new features and safeguards,” the OpenAI spokesperson said at the time. “Participation is voluntary, with no obligation to provide feedback or use the tool. We’ve been excited to offer these artists free access and will continue supporting them through grants, events, and other programs.”

This post appeared first on NBC NEWS

The pieces are coming together for the startup basketball league Unrivaled.

The 3×3 women’s hoops league announced Tuesday that it has signed a multiyear deal for Under Armour to become its official uniform partner and performance outfitter. This follows the league announcing a number of recent big player signings and reaching a media broadcast deal in October with TNT Sports.

Financial terms of the deal were not provided, but Under Armour will provide all players, coaches and staff with performance apparel and accessories both on and off the court.

“We couldn’t be more thrilled to partner with Unrivaled to outfit some of the best women’s basketball players in the world as they compete on this exciting new stage,” said Sean Eggert, Under Armour senior vice president of global sports marketing.

The retailer said that all players who do not have an active shoe deal will have Under Armour basketball footwear options available to them. Additionally, Under Armour will give players the opportunity to create custom products.

Unrivaled will kick off its inaugural season Jan. 17 in Miami. The league has positioned itself as a destination for WNBA stars to play basketball in the U.S. during the offseason.

In the past, many WNBA players have had to go overseas to play in the offseason as a way to supplement the income. Starting salary in the WNBA is $64,154 according to ESPN.

Unrivaled has signed 36 top players by offering attractive financial incentives that include equity. The league said it offers the highest average salaries in women’s professional sports league history. It’s being backed by a number of investors.

This latest deal comes as Baltimore-based Under Armour is in the midst of a turnaround effort after founder Kevin Plank took the helm again this past March. Former Marriott executive Stephanie Linnartz had been in the role for barely a year before she was ousted; she was the second CEO the company had cycled through in less than two years.

Over the past few years, the brand has struggled to keep up with competition and drive full-price sales, relying on promotions and the off-price channel to move its products.

Before she left, Linnartz had been trying to market more to women and improve the product offering, but when Plank retook the helm, he walked that strategy back and said the company would be doubling down on its men’s apparel business. He later announced a turnaround plan that centers on making Under Armour a premium brand and pulling back on discounting so it can improve profits and boost demand.

Last month, the company saw a bright spot when reporting fiscal second-quarter earnings. It lifted its annual profit forecast and Plank said the turnaround is “beginning to gain traction.” Still, the stock is down about 81% from its all-time high on Sept. 17, 2015.

Under Armour’s deal with Unrivaled offers a glimpse into where the company is putting its money and, perhaps, indicates it wants to focus more on female athlete as it looks to capitalize on the hype of women’s sports to reenergize the brand.

Under Armour currently has partnerships with top women’s college programs such as the University of South Carolina, Notre Dame, Maryland and Utah.

“As a brand, we have a long history of investing in women’s basketball, from the grassroots level all the way up to the pros,” Eggert said.

This post appeared first on NBC NEWS

Good morning and welcome to this week’s Flight Path. The “Go” trend in equities continued again this past week and we saw a full week of uninterrupted bright blue bars. Treasury bond prices painted “Go” bars and the week ended with strong blue bars. U.S. commodities also remained in a “Go” trend with the indicator painting strong blue bars. The dollar likewise was able to hold on to its trend but we saw a string of weaker aqua “Go” bars this week.

$SPY Sees Another Strong week of “Go” bars

The GoNoGo chart below shows that price continued to rally this week as the indicator painted nothing but strong blue “Go” bars again. We do see a Go Countertrend Correction Icon (red arrow) at the most recent high which warns us that price may struggle to go higher in the short term. We see that GoNoGo Oscillator has fallen out of overbought territory and is now resting at a value of 4. There is still therefore strong momentum that is confirming the underlying “Go” trend.

On the longer term chart, the trend continues to be strong. Last week saw another higher weekly close albeit on a smaller bar. We will watch to see if price can edge higher again this week. The oscillator panel shows that momentum has been able to remain positive for several months now. It is currently at a value of 5. If momentum wanes, we will look to see if it finds support at the zero level again.

Treasury Rates Fall out of the “Go” Trend

Treasury bond yields completed the transition from a weaker “Go” to strong “NoGo” bars this week. With a couple of amber “Go Fish” bars that expressed uncertainty we can see that the “NoGo” took hold first with a pink bar. This came after GoNoGo Oscillator suggested as much when it failed to find support at the zero line just over a week ago. Now we see that momentum is negative at a value of -3 and confirms the new “NoGo” trend in price.

The Dollar Still Rests in “Go” Trend

We saw the dollar spend another week moving sideways this week and GoNoGo Trend painted a string of weaker aqua “Go” bars.  We turn our eye to the lower panel and we can see that GoNoGo Oscillator has failed to find support at zero after having been stuck there for several bars. The Oscillator has now broken out of a GoNoGo Squeeze into negative territory which tells us that momentum is out of line with the “Go” trend. We will watch to see if this leads to further price deterioration.

Today Carl looks at the 26 indexes, sectors and groups in a CandleGlance to see how the indexes stack up. It is clear that all of the indexes are as good as they can get. Carl warns that when things are as good as they can get, the only place left to go is down. Overbought conditions can persist, but it is certainly an attention flag.

Today Carl took us into the Semiconductor (SMH) industry group to discover how the group is weighted.

Carl also gives us his overview of the market in general and then covers the Magnificent Seven in the short and intermediate terms. Which ones are set up bullishly and which two are struggling?

Erin takes over and talks about sector rotation by going through the sector CandleGlance to see where aggressive and defensive sectors stand currently. There are clear winners and losers.

The pair finish the trading room by going through viewers symbol requests that includes looks at Palantir (PLTR) and Super Micro (SMCI).

01:22 DP Market Scoreboards

02:46 Semiconductor (SMH) Weighting

04:57 Market Overview including Dollar, Gold and Crude Oil among others

13:47 Magnificent Seven

17:31 Market As Good As It Gets

22:47 Sector Rotation

31:02 Symbol Requests

If you’d like to join us LIVE on Mondays at Noon ET, register here: https://zoom.us/webinar/register/WN_D6iAp-C1S6SebVpQIYcC6g#/registration

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Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


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Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


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Bear Market Rules


Despite attempts to break higher, Tractor Supply Co. (TSCO) may be setting up for a potential move lower. Recent price action and valuation concerns suggest that TSCO’s upside might be limited in the near term.

In this analysis, we’ll outline the technical signs of weakness, delve into the fundamentals that appear stretched, and review a limited-risk options strategy to capitalize on a bearish outlook. All of this was identified instantly using the OptionsPlay Strategy Center within StockCharts.com, demonstrating how subscribers can uncover similar opportunities instantly.

From a technical standpoint, TSCO has shown troubling signs:

  • Failed Breakout. After initially breaking out above the $290 resistance area in October, TSCO has failed to maintain any meaningful follow-through. Instead, it has slid back into its prior trading range between $265 and $290.
  • Underperformance and Negative Momentum. This inability to hold higher ground has coincided with relative underperformance versus the S&P 500. As the stock struggles to sustain gains, negative price momentum suggests increasing downside risks.

FIGURE 1. DAILY CHART OF TRACTOR SUPPLY CO. The stock is retreating toward its previous trading range between $265 and $290. Tractor Supply is also underperforming the S&P 500, and the MACD indicates momentum is slowing down.Chart source: StockCharts.com. For educational purposes.

Beyond the chart, TSCO’s fundamentals raise questions about its valuation:

  • Modest Growth, High Valuation. With an expected EPS growth of just 7% and revenue growth of 4%, TSCO’s top and bottom line expansion trails its industry peers. Yet the stock trades at a hefty 25x forward earnings multiple.
  • Slim Margins and Rising Debt. A net margin of only 7% offers limited cushion to navigate headwinds, especially as the company’s debt load increases each quarter. Paying a premium multiple for modest growth, narrow margins, and escalating leverage challenges the justification for TSCO’s current valuation.

Recent earnings announcements provide mixed signals. On the positive side, Q3 2024 net sales rose by 1.6%, and gross margin improved by 56 basis points, reflecting some operational efficiencies. The company also reported EPS in line with expectations and pursued strategic acquisitions like Allivet to bolster its pet product segment. However, TSCO faced a slight decline in comparable store sales, a 5.3% decrease in net income, and missed analyst sales estimates. Sluggish discretionary spending and higher expenses have also weighed on performance. Looking forward, TSCO must navigate a delicate balance between growing sales and managing costs—an increasingly challenging task if consumer spending remains tepid.

Options Strategy: Call Vertical Spread

To position for a potential downside, the OptionsPlay Strategy Center suggests selling a Jan 24, 2025 $285/$300 Call Vertical @ $5.70 Credit. This entails:

  • Selling January 24, 2025, $285 Call at $9.70
  • Buying January 24, 2025, $300 Call at $4.03
  • Net Credit: $5.70 per share (or $570 per contract)
  • Maximum Potential Reward: $567
  • Maximum Potential Risk: $933
  • Breakeven Point: $290.70
  • Probability of Profit: 63%

This neutral-to-bearish strategy generates premium income upfront and profits if TSCO remains below $290.70 at expiration (see strategy details below).

FIGURE 2. SELLING A CALL VERTICAL SPREAD IN TRACTOR SUPPLY CO. Here you see the strategy details of selling a Jan 24, 2025 $285/$300 call vertical.Image source: OptionsPlay Strategy Center in StockCharts.com. For educational purposes.

Unlock Real-Time Trade Ideas with OptionsPlay Strategy Center

 The bearish opportunity in TSCO was identified swiftly using the OptionsPlay Strategy Center, which is now available at StockCharts.com. The platform’s Bearish Trend Following scan zeroed in on TSCO as a candidate for downside exposure and even structured the optimal options trade in real-time.

By subscribing to the OptionsPlay Strategy Center, you gain access to:

  • Automated Market Scanning. Instantly discover trade opportunities aligned with various market outlooks and strategies.
  • Optimal Trade Structuring. Receive tailor-made options strategies that consider both your conviction and risk tolerance.
  • Time-Saving Insights. Access actionable ideas within seconds, eliminating hours of manual research and enabling more informed decision-making.

FIGURE 3. TRACTOR SUPPLY CO. WAS A CANDIDATE UNDER THE BEARISH TREND FOLLOWING SCAN.Image source: OptionsPlay Strategy Center in StockCharts.com.


Don’t miss out on valuable trading opportunities. Subscribe to the OptionsPlay Strategy Center today and streamline your trading approach. With tools designed to keep you ahead of the market, you can consistently find the best options trades and harness them efficiently every day.

Looking for options trade ideas? In this video, Tony presents some of the best options trading strategies! After discussing special 0DTE strategies, the big picture, and individual sectors and industries, Tony covers bullish and bearish ideas for stocks including NVDA, SHOP, GOOGL, META, CAT and many more.

This video premiered on December 9, 2024.