The second option requires a bit more time and effort than a 301 redirect. You could do a mini overhaul of the site and turn it into a microsite for your main domain. This option is good for exact-match domains for your targeted keyword, and there are other reasons for going the microsite route that Rand's highlighted in his post about root domains, subdomains, subfolders and microsites. This strategy also works better if the old domain has decent rankings for the keywords you're targeting.

Domain name search results appear as you type. We can do domain lookups very quickly, and usually show domain search results in less than 100 milliseconds. We generate domain names and check .com and many other domain extensions instantly. We use artificial intelligence techniques to find domains for sale that you can buy today and expired domains to backorder. Just start typing!

Okay. So, let's move on to our next tab crawl from search query, something look at the settings. So if you want to limit the amount of results that you cruel per search query, you can tick that and specify, so if you only want to crawl the top three or ten results from each search query, you can enter that there. He'll just go to the end of the search. Next setting, results on Google skip the domain if it's in the majestic million, so the majestic million is just something from majestic, it's a free resource that majestic SEO makes available that shows the most popular hundred domains.

*Domain squatting, or cybersquatting, refers to registrants who register domain names before other people or organizations that want them have a chance to do so, often in violation of trademarks. Cybersquatters sometimes will attempt to extort money from those who should rightfully own the domain. Domain squatting is different from domain parking, which is when someone registers a domain they are not actively using without attempting to sell it to someone else.
Now, a lot of times these great domains that have pending delete will get snapped up in a flash. Okay? You want to use the same system that’s 500,000 domains so you can always sort them by whatever you want to do to make sure you’re only looking at quality domains and look at the link profile the same way. Once you find one that you like, you can’t just sit on your computer at Go Daddy and wait for it drop on 6/14 and expect to get it because there’s going to be a lot of other people gunning for that domain. You actually have to use a service like Snap Name.
1) pending delete auctions.  These are domains that were not renewed and are going through a pretty complicated drop process.  You can backorder these names at the auction venues and then each attempts to "catch" the dropping domain.  If one is successful you win the domain at $59 if you're the only one to backorder the name.  If more than one person backordered the domain a 3 day private auction is held.  Once the domain goes through the drop process, the back links have pretty much zero SEO benifit to the new domain owner.
We do not only have Expired Domains, but you can also find lists of Deleted Domains for a lot of TLDs. Deleted Domains or Dropped Domains are available for registration and can be picked up for just the normal regfee at your preferred domain registrar! All Domains have the typical SEO relevant data, like Number of Backlinks, Birth Date and a lot more.