4 Call Contenders: Airlines

All four stocks have excellent liquidity

   

Each week I use my Power Stocks scanner to find the best stocks for options trading. 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. All of these are names you’ll recognize, and for good reason—options which do not have liquidity may trap you into a position, or prevent you from taking a large enough position to make the transaction worthwhile.

The following airline stocks have those qualities I look for. 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.

  • Boeing (NYSE:BA): Support for BA is at $78, and the stock has average volatility.
  • Delta Airlines (NYSE:DAL): Delta’s support is at $15, and the stock has volatility well above average.
  • Jet Blue (NASDAQ:JBLU): Support for JBLU is at $6, and the stock has above-average volatility.
  • Southwest Airlines (NYSE:LUV): Southwest is trading fairly close to its support at $12, which could signal a good entry point. Volatility is average.

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