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Caterpillar - Catching A Reversal On A Monday

Mondays are not the best of days to look for reversals however Caterpillar jumped upwards a modest amount which impacted the value of this series of Puts. The Puts are off about 50% on the day at this point in time. This is a 1:36 p.m.readout. Here is it's five day chart. Now its one day chart. It's Puts. Why consider them? It would seem like kind of a random thing to do. Why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on all of last weeks business articles talking about how Caterpillar could potentially benefit from all this new AI movement. Caterpillar afterall builds heavy equipment which can be used in the construction of nuclear reactors. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. That's understandable. No one wants to hold Puts on Caterpillar when it is in this...
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Can You take Flyers On Stocks You Know Nothing About Based On Something You First Learned Of At The End Of Last Week?

Here are two stock to watch. 1)
Jazx. What an explosion in it's stock price. When a stock jumps like that it is bound to attract a lot of short term interest. News about the treatment of prostate cancer in early trails. It had little volume on Friday March 1st and here is how it's one day chart looked that day.
2) Viking Terapeutics with mid-phase trails on a weight loss drug
Now for some March 5th news. Both stocks took a trick out of the same paybook. They used the spike in the stock's prices to issue new shares at it's higher prices.
Now Viking.
What's going to happen next is anyone's guess. The markets as of late can suprise. On a more sobering note look at this other well known drug stock. It's a three year chart.
What a difference. Many people hate trading drug stocks. It's a game of trying to follow what is hot. That's not a fun game to be playing. ****Let's jump ahead 15 months to June 1st 2025. 

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