Altria Stock Options Pop After Goldman Sachs Upgrade

Altria Stock Options Pop After Goldman Sachs Upgrade

Goldman Sachs today said that tobacco concern Altria Group Inc (NYSE:MO) is a potential winner for investors amid the ongoing war between Ukraine and Russia. The firm upgraded Altria stock to "buy" from "neutral," and upped its price target to $57 from $48, saying that it's better positioned than competitor Philip Morris International (PM), thanks to its defensive, domestic-focused business.

Coming into today, analysts were hesitant toward Altria Group stock. Of the nine in coverage, six carried a "hold" rating on the equity, with three recommending a "strong buy." Meanwhile, MO's 12-month consensus price target of $54.61 is a 3.2% premium to current levels of trading.

Call traders are taking notice of the bull note, too. At the halfway point, 31,000 calls have already crossed the tape, which is double what's typically seen at this point and around seven times the amount of puts traded today. New positions are also being bought to open at the most popular contract, the weekly 3/25 54-strike call.