Options Traders Bank 300% Profit On Altria Stock

Altria stock was in prime position to bounce on the charts

Jun 29, 2017 at 3:05 PM
facebook twitter linkedin


Subscribers to Schaeffer's Players service recently enjoyed a 300% gain with Altria Group Inc (NYSE:MO) weekly 6/23 71-strike calls. Below, we'll break down how we located MO stock, and how the options trade unfolded. 

We initially recommended Atria stock back on May 22. The shares had retraced their November-to-May rally, and were trading back at the 38.2%-50% retracement zone, also home to their 2016 highs. With the stock breaking away from a previous support level at the 20-day moving average, it looked ready to add to its 5% year-to-date lead. 

Plus, the stock had plenty of upside potential, from a contrarian perspective. For starters, the majority of analysts covering the stock had "hold" or "strong sell" ratings. This pessimism was also seen among options traders, with MO shares sporting a Schaeffer's put/call open interest ratio (SOIR) 1.16, which was only 4 percentage points from a 12-month high. We suspected an unwinding of some of this pessimism could help Altria on the charts. 

MO shares began to climb immediately after our trade, allowing us to close half the position on May 30. After a brief period of consolidation, Altria stock made another upside push to record-high territory, and we finally closed our bullish position on June 20, allowing options traders to quadruple their money. 

altria stock

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners