Cronos Calls Fly Off the Shelves on Altria Stake

Altria is investing $1.8 billion in the weed company

Dec 7, 2018 at 9:50 AM
facebook X logo linkedin


The shares of Canadian pot stock Cronos Group Inc (NASDAQ:CRON) have skyrocketed out of the gate today, after cigarette maker Altria Group Inc (NYSE:MO) said it would take a $1.8 billion, 45% stake in the company. CRON stock rallied earlier this week on rumors of Altria buyout interest. At last check, the equity is up 33% at $13.89, on pace for its highest close ever.

CRON options are flying off the shelves already. Within the first few minutes of trading, the equity has seen roughly 11,000 calls change hands, and about 3,600 put options. Most active is the January 2019 30-strike call, the buyers of which expect CRON to more than double within the next several weeks.

Cronos shorts could be feeling the heat today. Short interest increased by 11.5% in the past two reporting periods, and now accounts for more than 17% of the security's total available float.

MO stock is also up on the news, as well as a fresh "overweight" rating and $64 price target at Barclays. The shares were last seen 2.7% higher at $55.86. From a longer-term perspective, Altria stock suffered a brutal November, going from a Nov. 9 high above $66 to to a three-year low of $52.90 by Nov. 26. Weighing on the shares were talks of a Food and Drug Administration (FDA) ban on menthol cigarettes.

Most analysts are already in Altria's corner, though. Despite FDA fears and the equity's recent plunge, 10 of 14 brokerage firms already consider MO a "buy" or better, with not a "sell" in sight.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI