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Trading health care after key High Court decision

Shares of hospital-related stocks surged Thursday after the Supreme Court ruled that federal subsidies are legal under the Affordable Care Act.

HCA Holdings, Tenet Healthcare and Community Health Systems were among the biggest winners of the day, posting gains of between 9 and 13 percent each.

"Fast Money" trader Tim Seymour said HCA seems to be the obvious choice out of the hospital operators, while Tenet seems to be the contrarian play. He noted that the whole sector was destined to rise, thanks to consolidation and positive fundamentals.

Read MoreObama: Affordable Care Act is 'here to stay'

Trader Brian Kelly said the High Court's decision removed some of the regulatory and legal overhang from the stocks. "You know they're going to make money," Kelly said, suggesting that investors purchase a basket of them as a longer-term secular play.

Health-care benefits provider Aetna climbed on a report that it was closing in on a deal to acquire insurance provider Humana. Bloomberg first reported the news. Aetna closed up 4 percent, while Humana rose about 7 percent.

"Fast Money" trader Guy Adami called Humana a "best of breed" stock that he expects to trade near $220 a share, up from Thursday's close of $90.72.

Animal-health firm Zoetis also moved higher on takeover buzz. Valeant Pharmaceuticals approached Zoetis about a potential buyout, Dow Jones reported, citing sources. The news sent Zoetis shares up more than 11 percent during the regular session.

"I think it's a great company, and I'm sure it's going to get taken over… but I don't know why you have to buy every potential acquirer at all-time highs," said trader Dan Nathan, speaking of Zoetis.

Disclosures:

Dan Nathan

Dan is long JPM July put spread, TJX Aug Put, TXN july/aug put spread, CAT July/August put spread, TWTR, TWTR SEPT call spread, SO, INTC July put, LVS July Aug Put Spread, NKE June weekly put spread; he is short SO Aug call. Today he sold to close SPY June put fly and bought to open NKE June weekly put spread.

Brian Kelly

Brian Kelly is long BBRY, BTC=; he is short Yuan. Today he sold EEM, MSFT, NOC, SPY, TAN, TSL, Yen.

Guy Adami

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

Tim Seymour

Tim Seymour is long AAPL, T, BAC, C, DIS, F, GE, GM, GOOGL, INTC, SUNE, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.