When I looked at my Power Stocks scanner this week, I searched for strong buy and strong sell ratings, as I usually do—and imagine my surprise when I saw that all of the beverage stocks I follow were flashing a strong buy signal.
These are all names you’ll recognize—and with good reason. They’re both liquid and volatile, making them good candidates for options trading.
- Anheuser Busch (NYSE:BUD): Support for this stock is at $91, and it has average volatility.
- Coca Cola (NYSE:KO): Support for KO is at $38. It has volatility slightly below average, meaning the chance for a big drop down is low.
- PepsiCo (NYSE:PEP): Support for PEP is at $74. Volatility is well below average.
You can take advantage of these names with a buy at current levels or with a call options trade. As always, I recommend buying at-the-money calls two to three months out to give yourself time to be right.
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