Quote from WmWaster:
Here's my ideas.
Finds stocks which have risen sky-high (or all-time high). Then put them on the watch lists. If one stock can break through 2 major levels of supports with high volume (from its very top), it's time to do some puts.
You will have a higher chance to win if you do so in bearish market, so you'd better use this in bearish market. In bullish market, do calls might be wiser.
Another idea is to find stocks which hit a new low (or its first 52-week low). It's strange but stocks which hit low will keep hitting lows until it hits too many lows and break through at least 2 major resistance levels.