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 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 levels my scanner has detected for these stocks.
- Boeing (NYSE:BA): This stock has confirmed its upward trend after a temporary pullback. Such a bounceback is one of the most reliable buy signals if you plan to go long the stock. Support level is at $76.
- Anheuser Busch (NYSE:BUD): This stock has been in an upward trend for over a week, and displays good upside characteristics relative to other stocks. Support level is at $89.
- Archer Daniels Midland Company (NYSE:ADM): ADM is one of the strongest stocks I follow in any sector. Support is at $29.
- H.J. Heinz Company (NYSE:HNZ): HNZ is another powerhouse stock that’s running to the front of the pack. Support is at $62.
InvestorPlace advisor Ken Trester is editor of the popular Maximum Options program. 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 Maximum Options today for 2 months for only $99.