If you are pursuing option 1, then you will want to use an automated service for the reasons mentioned in the article. Follow the process in the article to see which registrar the domain name is located at. If it’s at a Auction House like GoDaddy, NameJet or SnapNames, I believe they publicly share if there is a backorder on a domain name but not who placed that backorder. (Any interest in a domain name may be enough for someone else to place a backorder, thereby driving interest in the domain name that may be visible to the registrant.) So if the domain is at a registrar partnered with one of these companies, then you’ll have to monitor it manually (via calendar entries based on the whois expiration data) to maintain your distance.
Regarding my statement above, “Any domain name that reaches expired status and is not renewed by the owner will be auctioned by an auction service.”–it did overstretch. I’ve modified it to be: “A domain name that reaches expired status and is not renewed by the owner will be listed at an auction service (see FAQ for exception to this rule).” Then I added a FAQ to clarify. Please check my thinking:
It will just go on and on and on endlessly, so that really is like a set and forget setting. Okay, now before I show you it in action, I'll just skim over some of these stats stuff. Here this is pretty self-explanatory really so that's the amount pages crawled so far, that's how many pages were crawling per minute, so once it's been running for a minute that that'll date and they'll update every minute after that. That is if the websites are blocking are crawl. Thatw how many websites currently are been crawled, so how many websites have been crawled. That's if we have it have it had any registrar errors, so we fired off some domains to see if they're available or not and there's been any errors in checking them it displays there.
If you bid at NameJet *after* the domain name moves to Pending Delete status, then it’s too late for NameJet to take advantage of their relationship with eNom and take control of the name. So then eNom thinks, “no interest from NameJet users; we’ll just drop it” and it goes through the regular deletion process — where the fastest fingers can register it. In some cases, investors don’t want to pay the $59 or $69 fee at NameJet and if there are no bids they can likely get it for $18.99 at Pheenix or using other dropcatching services.

Let’s just say for example we wanted this site, crystalgiftsworld.com. It looked good based on our analysis and we’d head over to Snap Names, Nameja is another one and what these service do is they have special technology on their site that allows them to try  to register a domain on your behalf over and over again. Okay? If you tried to do that your IP would get banned, but they have some system where they know how to do it just enough to get the domain, but not enough to get blacklisted.
Hi, I purchased a .org domain in a Godaddy auction, actually the closeout auction so it had been renewable and then available as a closeout after 36 days. I purchased the closeout domain because I was thinking of using it as a catchy anagram. I instead offered it to the Trademarked company to purchase for a nice sum of money, and now they are threatening to file legal action against me for “Domain Squatting” saying that I purchased it in bad faith. etc… The way I see it, is it was available for them to renew for 26 days, and if it was not owned by them they had a window of 10 days to purchase the name before I did in the regular auction. What’s your thoughts on this?
The way this list is implemented means I can't update prices, nor removed sold domains automatically and sedo doesn't provide me with the tools I need to implement it properly. Unfortunately some users keep contacting me to update their domain prices or remove their domains and I can't keep doing that manually. So I've decided to disable the list for now.