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Health Care Strategist's 3 Big Trades

Playing the volatility of the health care sector while legislation is still pending in Congress could be profitable, especially in managed care, Les Funtleyder, health care strategist at Miller Tabak, told CNBC.

Funtleyder touted Humana and UnitedHealthGroup as his two managed care picks, but suggested not buying the stocks outright.

"One of the things we are suggesting is, because of the volatility going into the next couple of months, either buying the volatility itself in the options market or maybe buying some calls either in December or going into next year," said Funtleyder.

"This way you don't buy stocks outright, but you do get to take advantage of upside post the volatility."

There will be about six to eight weeks of choppy trading in the managed care group, but then stocks should start rising, he said.

Funtleyder also recommended Johnson and Johnson . He said this stock was safe enough to be bought outright.

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Disclosures:

Disclosure information was not available for Funtleyder or Miller Tabak.

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