Vertex Pharmaceuticals Inc (NASDAQ:VRTX) stock is up 6% at $465.02 at last glance, after the U.S. Food and Drug Administration (FDA) approved the biotech's new non-opioid painkiller, Journavx. In a statement to the press, the company said it was the "first new class of pain treatment approved in more than 20 years." In response, Scotiabank raised its price target on VRTX by $3 to $433. 

Now recovered from its mid-December bear gap, VRTX is already up 15.7% since the start of 2025. Today's pop has the stock breaking back above the 250-day moving average, which provided support prior to last month's pullback, and recently acted as pressure. 

Options traders are chiming in straight out of the gate, with 8,427 calls and 2,690 puts exchanged so far -- 6 times the volume typically seen at this point. Expiring today, the weekly 1/31 417.50-strike put is the most popular, with new positions being sold to open there. 

Today's trading shows a shift in sentiment, as puts were more popular than usual over the last 10 weeks. This is per VRTX's 50-day put/call volume ratio of 1.18 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 89% of readings from the past year. 

The shares of blue-chip energy concern Chevron Corp (NYSE:CVX) are down 1.3% in premarket trading after the company missed fourth-quarter earnings estimates. Weakness in its refining business drove the decline, with its first loss in four years. However, revenue surpassed expectations with ease.

Coming into today, CVX boasts modest leads on a year-to-date and year-over-year basis, up 7.9% and 6%, respectively. The equity is on track for a monthly win, but is now poised to turn in a loss for the week. Set to open near $154.25, Chevron stock could slip below key support at $155, though support at its 80-day moving average may limit further downside.

Analysts could feel compelled to adjust their outlooks. Of the 22 brokerages covering CVX, 17 rate it a "buy" or better. The stock’s average 12-month price target of $176.43 represents a 12.9% premium to yesterday's close, leaving plenty of room for downgrades and/or price-target cuts.

Meanwhile, options traders are showing heightened bearish sentiment. Chevron stock’s 50-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 100th percentile of the past year.

Apple Inc (NASDAQ:AAPL) reported a top- and bottom-line beat for its fiscal first quarter after yesterday's close. The tech giant also shared a strong sales growth outlook, pointing to recovering iPhone sales amid the rollout of artificial intelligence (AI) features. No fewer than 14 analysts lifted their price targets, including Goldman Sachs to $294 from $280.

Coming into today, 15 of the 36 analysts covering Apple stock still rate it a tepid "hold" or worse. This means there's still plenty of room for upgrades amongst the brokerage bunch.

AAPL is up 4.2% to trade at $247.60 in premarket trading. Should gains hold, the equity will mark its fourth win in the last five days, and notch their best day since June. The shares are also on track for their first weekly gain in five as they extend a bounce off $220 and boast a 28.8% year-over-year lead.

While calls still outpace puts in the options pits, options traders have been more bearish than usual of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day call/put volume ratio sits higher than 80% of annual readings. An unwinding of this pessimism could boost AAPL.

It's worth noting the security has a history of exceeding volatility expectations, as evidenced by its Schaeffer's Volatility Scorecard (SVS) rating of 77 out of 100. In simpler terms, now may be a good time to weigh in on Apple stock's next more with options.

Fortinet Inc (NASDAQ:FTNT) hit a record high of $102.17 today after breaking past recent pressure at the $100 level. The software name could soon extend those highs, too, considering it's the best stock to own in February, historically. 

More specifically, FTNT took the top spot on Schaeffer's Senior Quantitative Analyst Rocky White's list of the best stocks to own next month. Over the last 10 years, the equity has finished February higher nine times, averaging an impressive 9% gain. A move of similar magnitude would put the shares above $111, adding to its roughly 55% year-over-year gain. 

An unwinding of pessimism could provide tailwinds as well. Despite the stock's outperformance, 23 of the 37 analysts in coverage carry a "hold" or worse rating, while the 12-month consensus price target of $98.84 sits at a slim discount to current levels. 

Furthermore, puts have been much more popular than usual in the options pits. FTNT's 10-day put/call volume ratio of 1.79 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 91% of readings from the past year. 

Traders can expect some volatility from the company's earnings report, due out after the close on Thursday, Feb. 6. FTNT's recent post-earnings history is reasonably encouraging, however. The stock closed higher after three of its quarterly reports last year, including a large 25.4% pop in August. 

The earnings docket is in focus amid a slew of megacap reports, with a handful of Dow components stepping into the confessional as well. Caterpillar Inc (NYSE:CAT) and Microsoft Corp (NASDAQ:MSFT) are among them, and as both securities tumble after reporting results, now looks like a good time to check in.

Microsoft Stock's Worst Day Since October

MSFT is down 6% to trade at $416.03 at last glance, pacing for its fourth daily loss in five and worst day since October, but a floor at $410 looks ready to contain this pullback. The tech giant beat top- and bottom-line estimates during its fiscal second quarter, but it also issued a dismal cloud growth outlook and defended increased spending on artificial intelligence (AI) despite DeepSeek pressure. 

The equity attracted six price-target cuts in response, the worst from BMO to $500 from $510. The biggest loser on the Dow today, MSFT is also the second most-traded stock in the options pits with triple the intraday average volume. Most popular by far is the weekly 1/31 420-strike call, where positions are being opened.

Caterpillar's Lackluster Sales Forecast

CAT is also struggling, last seen down 4.3% at $376.12, brushing off a fourth-quarter profit beat after the heavy equipment name also reported a revenue miss and cut its 2025 sales forecast. Caterpillar stock failed to conquer the $410 region in the previous session, which also enacted pressure in November. Despite eyeing its worst single-day percentage drop since September, CAT still sports a 25.5% year-over-year lead.

Over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CAT's 50-day call/put volume ratio of 1.54 sits higher than all other annual readings. This indicates options traders have favored calls over the last 10 weeks.

As January winds down, Wall Street is set to notch its first monthly win of 2025, carrying strong momentum into February. However, not all stocks are poised to benefit from the bullish sentiment.

Schaeffer’s Senior Quantitative Analyst Rocky White has identified the 25 worst-performing S&P 500 Index (SPX) stocks in February over the past decade -- one of which is Take-Two Interactive Software, Inc (NASDAQ:TTWO). According to White’s research, TTWO has averaged a 6.7% loss in February over the past 10 years, managing a monthly gain only twice during that period. From its current perch, a drop of this magnitude would put the equity below $180.

Despite this historical weakness, Take-Two Interactive stock has had a solid start to 2025, up 4% year-to-date. The video game giant was last seen 0.8% higher at $191.56, after earlier touching $192.50 -- its highest level since November 2021.

However, an unwinding of optimism in the options market could present headwinds. TTWO’s 50-day call/put volume ratio of 5.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 88th percentile of the past year. If traders begin to unwind this bullish sentiment, Take-Two Interactive stock could face additional downside pressure.