Soda and cigarettes? Momentum trades

Coca-Cola
Breakout trades? 3 trades to watch   

Amid a wild year for stocks, "Fast Money" traders debated the merits of two names that have ticked higher despite volatility.

Shares of Philip Morris International and Coca-Cola have climbed more than 3 and 1 percent on the year, respectively. The gains compare to a loss of nearly 6 percent for the S&P 500.

Investors are "starved for yield" during a down year, and Coke may look appealing to some because of its dividend, trader Tim Seymour argued. He noted that a wider strategy change may also drive momentum for the stock.

A man delivers beverages from a Coca-Cola truck in New York City.
Getty Images
A man delivers beverages from a Coca-Cola truck in New York City.

Coke shares ticked slightly higher Wednesday, closing at $43.49. If the stock breaks above $45 per share, it would make a stronger trade than at its current level, contended trader Guy Adami.

For investors seeking dividends, Philip Morris also offers appeal, argued trader Brian Kelly. He said the company's dividend appears "safe," and the stock "held up very well" amid a downturn this year.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, BAC, DO, F, FCX, GM, GOOGL, INTC, JCP, NKE, SINA, T, TWTR, VZ, XOM. Tim's firm is long BABA, BIDU, KO, MCD, PEP, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.

Brian Kelly

Brian Kelly is long BBRY, Bitcoin, GLD, SLV, TLT, US Dollar; he is short Aussie Dollar, British Pound, CS, DB, Euro, EWH, Hong Kong Dollar, UBS, SPY, Yuan.

Karen Finerman

Karen is long BAC, C, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY calls, URI, she is short SPY. Her firm is long ANTM, AAPL, BAC, C, C calls, FINL, FL, GOOG, GOOGL, JPM, KORS, LYV, M, MOH, NRF, PLCE, URI, her firm is short IWM, MDY, SPY. Karen Finerman is on the board of GrafTech International.

Guy Adami

Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.