Author: Josh Enomoto, Investor Place

Essentially, large block trades and unusual options activity can signal what hedge funds or other institutional players are doing behind the scenes – moves that don’t always show up in regular stock volume metrics.

This sector is wildly unpredictable and should only be approached with money you can comfortably afford to lose.

Here, we’re going to be using standard financial metrics, focusing on earnings multiples, price-to-sales ratios (P/S), etc.