Insights 
VT 
Philip Morris International Inc. (PM), a global tobacco and nicotine company, is known for brands like Marlboro. It is focusing on smoke-free products through its “Beyond Nicotine” strategy. With the heat-not-burn technology in its IQOS product, Philip Morris is attempting to move towards healthier alternatives in over 180 markets globally. The company’s stock performance since March 2009 surged 475% to reach $186 in June.
The stock is currently in a pattern sequence involving multiple waves. The first wave, ending at June 2017, was corrected by a pullback to March 2020, setting off the third wave, which might target $204 or higher. Wave IV began after reaching an all-time high in June 2025. A completed 7-swing pullback within the 144.10-124.79 zone provides a chance for a potential 3-swing bounce.
Analysts expect wave V to surge beyond $200, concluding wave (III) and triggering a new buying opportunity in wave (IV). The overall trend remains bullish, and there is a cautious strategy of buying on pullbacks, marked with a blue box. The strategy involves monitoring various timeframes for opportunities.
We see Philip Morris stock trading within a key support zone, which appears to be an area where buyers are accumulating shares. The corrective pullback from the June 2025 peak has brought the price into an ideal entry point for the next major leg up. We are anticipating a potential surge that could carry the stock toward $200 in the coming weeks.
This technical setup is reinforced by strong fundamental performance, particularly in the company’s smoke-free products. The latest Q3 2025 earnings report, released last week, showed an 18% year-over-year increase in heated tobacco unit shipments, handily beating analyst expectations. This continued momentum in the IQOS platform confirms that the core growth story remains intact and is accelerating.
Investor sentiment has also been bolstered by the company’s commitment to shareholder returns. Following the board’s 5% dividend increase announced earlier this month, the stock now yields an attractive 5.6% at its current price. In a market showing increased volatility since September 2025, this combination of growth and yield is drawing in new investment capital.
For derivative traders, this scenario suggests positioning for upside. Buying call options that expire in early 2026, with strike prices around $175 or $180, offers a leveraged way to capitalize on a powerful move toward our $200 target. The recent price decline has lowered option premiums, creating what we view as a favorable risk-reward opportunity.
A more conservative approach would be to sell cash-secured puts with strike prices near the lower end of the support zone, such as $130 or $135. This strategy allows traders to generate income from the premium collected. It also establishes a price at which one would be willing to own the stock if the dip unexpectedly deepens, which we continue to view as a buying opportunity.
