AI Volatility Radar: 2 High-Momentum Stocks + A Trader Strategy

AI models surface two volatile stocks and a quick trading approach to profit from this week’s fast-moving setups. Verify every signal before trading.

July 29, 2025 • Estimated Reading Time: 5 minutes

AI Volatility Radar: 2 Stocks + A Fast Strategy for Big Swings

AI scans reveal two high-volatility stocks and a quick strategy you can use to trade this week’s biggest movers.

✍️ Editor’s Note

Markets don't hand out easy wins - especially when volatility surges. The stocks and strategies in this issue are designed for active traders who understand risk and discipline. Always double-check the AI signals, confirm key data (implied volatility, short interest, and volume), and size positions wisely. Trade smart, not reckless.

🔥 Why Volatility = Opportunity

Quiet markets mean smaller gains.

But when implied volatility spikes, short-term traders can capture double-digit moves - up or down - in hours or days.

AI tools now pinpoint:

  • Stocks with options activity surging far above average

  • Names trading well beyond normal volatility ranges

  • High short-interest setups primed for violent swings

This week, two stocks dominate the radar.

🎯 2 Stocks on AI’s Volatility Watchlist

🚀 Riot Platforms (RIOT)

  • Implied volatility between 77–87%, far above its 30- and 120-day averages.

  • Call options flow rising as Bitcoin volatility spikes.

  • Attractive for momentum trades but vulnerable to sharp pullbacks after news or earnings.

Source: Barchart.com

🥩 Beyond Meat (BYND)

  • Short interest near 38.7% of float with implied volatility in the 93rd percentile.

  • Heavy put volume, but any upside surprise could trigger a violent short squeeze.

  • Best approached with tight stops and defined exits.

Source: Barchart.com

🧠 Quick Strategy Tip: “The Volatility Bracket Trade”

When trading high-IV names, avoid chasing spikes. Instead:

  1. Set entry triggers slightly above recent highs (for longs) or below lows (for shorts).

  2. Bracket trades with OCO (One-Cancels-Other) orders to lock profits and control risk.

  3. Use ATR (Average True Range) to size stops - typically 1.5× ATR for swing trades.

This keeps you in the move but out of the noise.

📊 Market Outlook (AI Pulse)

  • Crypto miners like RIOT remain volatility hubs as Bitcoin swings.

  • Heavily shorted consumer names like BYND are driving retail option frenzies.

  • VIX futures imply more elevated volatility next week, with traders paying up for near-term contracts.

Bottom line: expect bigger intraday ranges and more failed breakouts - stay disciplined.

🧠 Prompt of the Week: Build Your Own Volatility List

"List 5 U.S.-listed stocks with:
1) Implied volatility at least 25% above their 30‑day average,
2) Average daily trading volume over 1 million shares,
3) Short interest above 20% OR options volume double the 30‑day average,
4) And a record of moving 5%+ in a single session.
Output ticker, implied volatility change %, short interest %, and ATR."

🔎 How to Verify Before Trading

🛠 Tool of the Week

Cheddar Flow Volatility Scanner - Track real-time options surges and IV spikes to see where big traders are moving money.

🚀 Your Next Step

Run the AI prompt, verify the signals, and set alerts for clean breakouts or breakdowns. Trade with tight stops, OCO brackets, and ATR-based sizing to manage risk.

Vaulting Your Wealth Forward,
– T. D. Thompson

AI Investing Vault

The content above is for educational and informational purposes only and does not constitute financial advice or a solicitation to buy or sell any financial instruments. Trading and investing involve significant risk of loss, and past performance is not indicative of future results. Always consult with a licensed financial advisor or conduct your own research before making any investment decisions. Use of AI tools and strategies mentioned above is at your own discretion and risk. AI Investing Vault may receive compensation if you purchase tools or services mentioned in this email, at no additional cost to you.