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Winston (premium)
February 4th, 2015 at 9:02 am | (Unlocked) | Permalink |PM/ be careful of confusion between PM (Philip Morris International) and MO (Altria). The spin off of PMI from Altria a few years ago created two companies: MO was given the US rights to Altria trademarks and PM was given the international rights to Altria trademarks. Although PM is headquartered in the US, it has no right to sell in the US – hence all its sales are in non US dollar currencies and therefore is being creamed at the moment through the appreciation of the US dollar.
MO/Winston - Thanks! I messed that up then. I do like PM, who are only down over currency issues but I mixed them up with MO re the pot trade. MO is, unfortunately, way up in price, probably due to people who caught on to the pot trade as well.
With MO, then, I'd go with the speculative play. How about selling the 2017 $40 puts for $2.30 and using that money to buy the $50/60 bull call spread at $4.20 for net $1.90 on the $10 spread. Nice 20%+ discount on an entry and even nicer $8.10 profit (426%) if all goes well. It's no 19,900%, but it will have to do as we missed the earlier run. Let's add 5 of these to the LTP as well - it will be fun to see which does better.
