In addition to the weekend warrior, there’s now the suburban farmer.

The other day, I counted seven chickens and roosters wandering around someone’s front yard in the subdivision behind our office.

Closer to home, we get farm-fresh eggs delivered each Sunday by a man who practices law as his day job. And, yes, he rolls up in a Mercedes.

Tractor Supply’s (NSDQ: TSCO) more than 1,700 stores are well situated in rural areas to cater to actual farmers, but they’re also positioned near large cities to capture dollars from big-spending would-be farmers (and, of course, gardeners) too.

Its rural concentration along with the breadth and depth of its offerings—everything from agricultural machine parts to animal feed to gardening supplies—help stave off competition from other big-box retailers.

Meanwhile, Tractor Supply boasts a strong balance sheet, with low leverage and ample free cash flow.

The second quarter is typically the company’s seasonally strongest period, and the late spring may have deferred some first-quarter sales, potentially making it even stronger.

However, this contract expires about a week before the company is scheduled to next report earnings. It’s never a bad thing if the timing of a short-term trade can eliminate the possibility of any earnings-related surprises.

This trade will generate immediate income of at least $90 per contract now, with the possibility of buying Tractor Supply at a nearly 7% discount to where it currently trades if the stock gets put to you. Investors should set aside $7,000 per contract sold to buy the stock in case the option expires in the money.

Regardless of how many contracts you sell, it’s absolutely critical that you follow the instructions below, particularly when it comes to setting the limit order.

How to Make the Trade:

• Trade: Sell to open the July 20, 2018, $70 Put on TSCO.
• Allocation: Sell one put for every 100 shares you would be pleased to buy at $70 per share.
• Prices:
  • Current Stock Price: $75.00
  • Limit Order Price: a credit of $0.90 or more.
  • Tell your broker: “I want to sell a put on Tractor Supply (NSDQ: TSCO) stock. Specifically, I want to ‘sell to open’ one July $70 Put for a credit of $0.90 per share or more.”

• Further Instructions Regarding the Trade:
  • If the option price changes, you can adjust our recommended limit based on the midpoint of the bid/ask spread, which you should be able to see when entering the trade. Just make sure the potential credit is at least $0.90 per share or more.
  • Place your limit order on a “good ‘til canceled” (GTC) basis and be patient.

The Win-Win Situation: 

For every put contract you sell, you will collect $90 that’s yours to keep no matter what happens in the future.

If the put expires worthless, meaning the stock price is above $90 per share at expiration, then we’ll do another trade to create another instant payment.

If the stock is trading at or below the strike price upon the contract’s expiration, then you’ll be buying Tractor Supply at a 7% discount to the current market price, while locking in a yield of 1.8%—plus the premium you pocketed when you sold the put.

Then we’ll collect the dividend while creating more instant payments by selling covered calls against the stock.