4 Call Contenders: Healthcare

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.

These hospital supply companies have a well-established niche in the booming healthcare industry, and I don’t see any of these stocks slowing their bullish trends soon. All have low volatility, which says to me that these names are likely to keep climbing steadily rather than shooting up all of a sudden.

  • Abbott Labs (NYSE:ABT): Support for the stock is at $34.
  • Baxter International (NYSE:BAX): Support for this stock is at $69.
  • Becton, Dickenson & Co. (NYSE:BDX):Support for this stock is at $89.
  • Johnson & Johnson (NYSE:JNJ): Support for this stock is at $77.

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.

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