Carter Worth Is Bullish On Altria Group Inc

, Carter Worth spoke about

. He likes its 4.11 percent dividend yield because it is higher than the yield investors can get in Utilities SPDR (ETF)

,

,

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and 10-Year Treasuries and it had significantly better return than these assets in the last two years. The stock is not sensitive to interest rates changes by Fed, which makes it a great defensive play, thinks Worth. Worth used his technical analysis skills to identify a head and shoulders bottom pattern on a chart of the stock, which makes him believe that

is going higher. He also showed a bullish wedge on the chart. Mike Khouw suggested an options strategy to make a bullish bet in the name and exploit increased volatility. He would sell the October 55 puts for $1, which is almost 2 percent of the current market price. The trade breaks even at $54. If

trades lower, Khouw would have to buy it at $55 and in that case he recommends selling calls against the long position. Dan Nathan would use a different approach. He would use a risk reversal strategy, selling an out of the money put and buying the out of the money call.