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Who Says There's No Winning with Sinning?

Friday, 22 Jun 2012 | 2:49 PM ET

Find out which sin stock trader Steve Grasso says is not only one of his favorite yield plays but a core holding in his portfolio, right now.

Grasso, who is, director of institutional sales trading at Stuart Frankel, says if you’re looking for yield – look no further than Altria, which yields about 5%.

And he says, don’t worry that Philip Morris cut its full year earnings estimates for the second time this year; he says that shouldn't spook you.

Philip Morris, which sells the same brands of cigarettes as Altria but outside the US, cited a stronger U.S. dollar and waning sales in Europe as the drags.

Neither of those headwinds impact Altria. In fact that’s exactly why Grasso likes it – because Altria is a sin stock with US focus.

“It’s one of my core holdings,” says Grasso. “And until the market is no longer range bound – I’m staying with it."

FMHR's Top Three Trades
The FMHR crew delivers its top three trades. Also, why is Altria a "smoking-hot" stock?

* You can find our conversation about Altria about 2:15 into this video clip.

Posted by CNBC's Lee Brodie



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Trader disclosure: On June 22, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long NFLX CALL SPREADS; Jon Najarian is long INTC CALL SPREADS; Jon Najarian is long WNR CALL SPREADS; Jon Najarian is long WMT CALL SPREADS; Jon Najarian is long AMZN CALL SPREADS; Jon Najarian is long FB CALL SPREADS; Jon Najarian is long MS CALL SPREADS; Jon Najarian is long DDMG; Jon Najarian is long CIGX; Jon Najarian is long CME; Jon Najarian is long CBOE; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long CE; Pete Najarian is long NSFT; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long TCK; Pete Najarian is long HPQ; Pete Najarian is long PEP; Pete Najarian is long GE; Pete Najarian is long SCCO; Pete Najarian is long INTC; Pete Najarian is long NOK; Pete Najarian is long calls AAPL; Pete Najarian is long calls BAC; Pete Najarian is long calls CS; Pete Najarian is long calls HAL; Pete Najarian is long calls HIG; Pete Najarian is long calls JOY; Pete Najarian is long calls XCO; Pete Najarian is long calls THC; Pete Najarian is long calls MMR; Pete Najarian is long calls KEY; Patty Edwards is long PM; Patty Edwards is long MCD

For Steve Grasso
Stuart Frankel is long CUBA
Stuart Frankel is long GERN
Stuart Frankel is long HPQ
Stuart Frankel is long HSPO
Stuart Frankel is long MU
Stuart Frankel is long NYX
Stuart Frankel is long PRST
Stuart Frankel is long VVUS
Stuart Frankel is long XRX
Stuart Frankel is long ZNGA
Stuart Frankel is long APC
Stuart Frankel is long BAX
Stuart Frankel is long DVN
Stuart Frankel is long ESV
Stuart Frankel is long TBT
Stuart Frankel is short USG

For Patty Edwards
Patty Edwards is long for clients AAPL
Patty Edwards is long for clients GLD
Patty Edwards is long for clients INTC
Patty Edwards is long for clients CSCO
Patty Edwards is long for clients COST
Patty Edwards is long for clients PVH
Patty Edwards is long for clients SBUX
Patty Edwards is long for clients AMZN
Patty Edwards is long for clients FB
Patty Edwards is long for clients MSFT
Patty Edwards is long for clients ZNGA
Patty Edwards is long for clients MO
Patty Edwards is long for clients MCD
Patty Edwards is long for clients NKE
Patty Edwards is long for clients BGS

For Marc Chandler
Nothing to Disclose

For Mike Harris
Campbell is short the NYMEX
Campbell is short WTI Crude Oil
Campbell is short COMEX Gold
Campbell is long CME
Campbell is long S&P 500 Mini Futures


CNBC.com with wires.

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