Dykstra: Altria Options Are Smoking - TheStreet

Dykstra: Altria Options Are Smoking

It's been burned, but the January options look fit. Plus, the weekly Stat Book review.
Publish date:

The house the Marlboro Man built, Altria Group (MO) - Get Report (formerly known as Philip Morris), is the world's largest tobacco firm.

The stock has been hammered recently, and for those of you that have been following my investment strategy, you'll know why I am all over this pick today -- shares have been slapped out of reality.

Altria operates cigarettes through subsidiaries Phillip Morris and Phillip Morrris International, which sell Marlboro, the world's best-selling cigarette brand since 1972. The firm, which controls about half of the U.S. tobacco market, also makes and markets Parliament, Virginia Slims and Basic cigarette brands.

Beyond tobacco, Altria owns 29% of brewer

SAB Miller

. The tobacco giant's long-awaited spinoff of its

Kraft Foods


division to shareholders was finally completed in March.

In 2001, Altria appointed David Greenberg senior vice president and chief compliance officer. At the time, Greenberg said "We've been living with the consequences of losing the public's trust for some time now. And as we work to rebuild that trust, we've learned tough lessons about the crucial line that separates what's legal -- and society's sense of what's right." He has since developed an enterprise-wide "Compliance and Integrity" program led by senior officers and driven by employees worldwide.

With quality people like Greenberg on Altria's team, and the stock at fire sale prices, I am going to buy 10 January 60 calls (MOAL) DITM calls for $9.60, or better. Remember, I use limit orders only.

Now, as I do every Wednesday, it is time to face the music. I have been keeping track of every single pick since I began writing in February. The numbers are below.

Always Remember: Life is a journey, enjoy the ride.

At the time of publication, Dykstra was long MO.

Nicknamed 'Nails' for his tough style of play, Lenny is a former Major League Baseball player for the 1986 World Champions, New York Mets and the 1993 National League Champions, Philadelphia Phillies. A three time All-Star as a ballplayer, Lenny now serves as president for several privately held businesses in Southern California. He is the founder of The Players Club; it has been his desire to give back to the sport that gave him early successes in life by teaching athletes how to invest and protect their incomes. He currently manages his own portfolio and writes an investment strategy column for TheStreet.com, and is featured regularly on CNBC and other cable news shows. Lenny was selected as OverTime Magazine's 2006-2007 "Entrepreneur of the Year."