Call Contenders: Tech

Watch these stocks next week for a rally

   

As I was using my Power Stocks scanning program to take a look at the market, tech stocks caught my attention. Several names in this area 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.

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 volatility is considered to be 20.

  • Broadcom (NASDAQ:BRCM) is showing an excellent buying opportunity at $36.62. Support for the stock is at $35 so there should be plenty of upside from here if you’re looking to play calls. Volatility is slightly above average at 25.
  • Pitney Bowes (NYSE:PBI) also showed up as a “buy watch” stock at $15.44. It is also right around support at $15, and shows high volatility of 44.
  • Apple (NASDAQ:AAPL), at $452.97, also shows signs of moving up again. Support for the stock is at $433 and volatility is above-average at 34.
  • Nokia (NYSE:NOK) closed on Friday slightly below its $4 support, which it hasn’t hit since February, coming in at $3.66. Volatility is 31, pretty high, so I’m thinking the stock could rally in the coming week.
  • Microsoft (NASDAQ:MSFT) shows support at $30, and it closed Friday at $32.69. Volatility is average, at 20, so this may be one that crawls up slowly rather than rockets skyward.

Want to learn how to rein in your subjective side to capture more profits? My colleague Jon Markman is hosting a free 30-minute webinar this Wednesday at 4:30 PM Eastern: Trade Against Your Gut: When Instinct is Your Worst Enemy.

 

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