Each week I use my Power Stocks scanner to find the best stocks for options trading. Conglomerate stocks are looking especially strong right now—these are companies that have exposure to several different areas, which minimizes the company’s risk. The ones that caught my attention this week had all of the qualities I look for in a call option—the potential for a big move up (volatility) based on technicals and past activity in the stock, and good liquidity.
I’ll leave it up to you to decide which strike price and month are appropriate for your trading style, but be sure to give yourself enough time to be right. I’ve also included the support and volatility levels my scanner has detected for these stocks. An average level of volatility in my system is considered 20.
- ConAgra (CAG) shows support at $35, and as of Friday’s close was trading at $36.58. This stock shows volatility slightly below average at 19.
- Harsco (HSC) has slightly higher volatility at 25, and has already accelerated past $23 support with a $25.09 close price
- Target (TGT) closed Friday at $72.56, above $70 support, but it has fairly low volatility at 13.
InvestorPlace advisor Ken Trester has launched Power Options Weekly. This brand new weekly service delivers 5 new trades to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.