How to Avoid Volatility Squeezes

volatility squeezes are where the price doesn't have to move much from the low to the high before it can break out. But if you've got a stock that's had to run up, say 15% before it even tests resistance, that's astock that's just tired. So for option traders, you will find that if you're in a squeeze, the options prices like the call prices, they're actually not that expensive. You're actually buying at a discount. And then as long as the stock works in your favor, you'll be able to sell at a really nice premium.