Philip Morris (PM) – Trade Idea

Company Description

Philip Morris International Inc., incorporated on January 4, 2007, is a holding company. The Company is engaged in the manufacture and sale of cigarettes, other tobacco products and other nicotine-containing products in markets outside of the United States. Its portfolio consists of both international and local brands.

The Company’s segments include European Union (EU); Eastern Europe, Middle East & Africa (EEMA); Asia, and Latin America & Canada. The Company’s portfolio of international and local brands is led by Marlboro. Its mid-price brands are L&M, Lark, Merit, Muratti and Philip Morris. Its other international brands include Bond Street, Chesterfield, Next and Red & White.

The Company also owns various local cigarette brands, such as Dji Sam Soe, Sampoerna and U Mild in Indonesia; Champion, Fortune and Jackpot in the Philippines; Apollo-Soyuz and Optima in Russia; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics and Number 7 in Canada; f6 in Germany; Delicados in Mexico; Assos in Greece, and Petra in the Czech Republic and Slovakia.

In addition to the manufacture and sale of cigarettes and other tobacco products, the Company is engaged in the development and commercialization of Reduced-Risk Products (RRPs). It has a range of RRPs in various stages of development, scientific assessment and commercialization.

The EU Region covers all the EU countries and also consists of Switzerland, Norway and Iceland, which are linked to the EU through trade agreements. The EEMA Region includes Eastern Europe, certain Balkan countries, Turkey, the Middle East and Africa and its international duty free business.

The Asia Region covers all other Asian markets, as well as Australia, New Zealand and the Pacific Islands. The Latin America & Canada Region covers the South American continent, Central America, Mexico, the Caribbean and Canada. Its other tobacco products (OTP) primarily include tobacco for roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos. Source: Reuters

Charts

Option Pricing

  • Implied Volatility (expected price movement) for short-dated options is 24%
  • Realized Volatility (historic price movement) for short-dated options is 29%
  • Implied Volatility Percentile for short-dated options is 25%

Trade Idea

ntraday price action triggered a long volatility signal based on one of our proprietary strategies. If you are bullishly disposed on volatility, you may want to consider the following trade structure:

SideQtyExpStrikeType
Buy123 Aug83Call
Buy116 Aug81Put

TRADE MANAGEMENT

20 %
Profit Target

Trade Structure Profit Target.

10 D
Time Stop

Close the Trade Structure after 10 calendar days if the Profit Target has not been reached.

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