Tip #6:

Look for Surprise Volatility

You have to know where to find stock option candidates. The nature of the market today creates opportunities for surprise volatility. It’s dominated by institutional money managers, and as these managers move huge amounts of cash both in and out of stocks, a lot of surprise volatility develops.

One place to look for stocks with surprise volatility potential is in momentum industries such as tech, biotech and telecom that are traded on the over-the-counter market. The smaller capitalizations of these types of stocks make them more volatile.