Altria Group, Inc. (MO) Covered Calls

Altria Group, Inc. covered calls Altria Group, Inc. is a leading producer and marketer of tobacco, nicotine, and adjacent products in the United States. Its portfolio includes iconic brands such as Marlboro cigarettes, Copenhagen and Skoal smokeless tobacco, and on! nicotine pouches. Through its "Moving Beyond Smoking" vision, the company is transitioning toward a smoke-free future by investing in oral nicotine, e-vapor through NJOY, and heated tobacco. Altria also holds strategic stakes in AB InBev and Cronos Group.

You can sell covered calls on Altria Group, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for MO (prices last updated Fri 4:16 PM ET):

Altria Group, Inc. (MO) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
67.25 +0.24 67.23 67.50 8.5M 13 113
Covered Calls For Altria Group, Inc. (MO)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 67 0.76 66.74 0.4% 18.3%
Mar 20 67.5 1.66 65.84 2.5% 25.3%
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Altria Group, Inc. (MO) is a dominant force in the U.S. tobacco industry, currently undergoing a multi-year transformation to pivot away from traditional combustible products. Guided by its "Moving Beyond Smoking" strategy, Altria leverages the massive cash flows from its legacy cigarette business to build a diversified portfolio of reduced-risk nicotine and non-nicotine products. The company aims to lead the industry in harm reduction while maintaining its status as a premier return-of-capital play for shareholders.

Core Business and Portfolios

  1. Smokable Products: This remains Altria’s largest segment, anchored by Marlboro, which maintains over 40% market share of the U.S. cigarette category. While volumes face secular declines, the segment generates industry-leading margins through robust pricing power. In 2026, the company is investing in cigarette import and export capabilities to optimize its supply chain.
  2. Oral Tobacco Products: This segment includes traditional moist smokeless tobacco brands like Copenhagen and Skoal, alongside the high-growth on! nicotine pouch brand. In early 2026, Altria is completing the national rollout of on! PLUS, a premium pouch format designed to compete in the rapidly expanding "spitless" nicotine category.
  3. E-Vapor: Through its acquisition of NJOY Holdings, Altria owns the NJOY ACE, one of the few e-vapor platforms with FDA marketing granted orders. In 2026, the company is focused on scaling NJOY’s retail presence and defending its legal market share against illicit disposable products.
  4. Heated Tobacco and Adjacent Growth: Through the Horizon Innovations joint venture with Japan Tobacco, Altria is bringing the Ploom heated tobacco system to the U.S. market. Additionally, the company is exploring non-nicotine "wellness" categories, including botanical and nootropic pouches designed for energy and focus.

Competitive Landscape

Altria operates in a highly regulated, consolidated market where brand equity and distribution scale are the primary moats. Its most significant rival is Philip Morris International, which competes domestically in the nicotine pouch space with ZYN and is rolling out its IQOS heated tobacco system in the U.S. Other major competitors include British American Tobacco (BTI) and specialized players like Turning Point Brands. In the broader consumer defensive space, it competes for income-seeking capital with high-yield peers like AT&T and Realty Income. Additionally, its investments in Anheuser-Busch InBev and Cronos Group create strategic overlaps with the global beverage and cannabis sectors.

Strategic Outlook and Innovation

In 2026, Altria is executing a structural realignment of its capital to support its smoke-free transition. The company has introduced an enterprise-wide cost-savings initiative aimed at reinvesting hundreds of millions into its innovation pipeline. A key focus this year is the commercialization of "Agentic AI" within its retail trade programs to optimize shelf space and personalize digital offers for adult nicotine consumers. Management remains committed to a progressive dividend policy, targeting consistent annual growth in dividends per share, supported by a disciplined share repurchase program. By securing FDA marketing authorizations for new flavors and formats in the oral nicotine and e-vapor categories, Altria aims to offset the decline in traditional cigarette volumes. The overarching goal is to maintain a leadership position in the total U.S. nicotine space while expanding into international and non-nicotine markets to drive long-term earnings growth.