Catalyst Pharmaceutical Jumps on High Volume

Shares of Catalyst Pharmaceutical Partners

are trading higher on the session by 12.88%, at $1.14. The stock is seeing significant volume today, at 5x the 10-day daily average. Catalyst Pharmaceutical has been consolidating around the $1.00 level for the past three weeks following a high volume slide in late October. Shares have now breeched the 20-day moving average and have their sights set on the 50-day, around $1.22. Note that Catalyst Pharmaceutical has 1.00% short interest and a minuscule float, at 19.4 million shares. There are no options contracts trading on the name, so to play it you have to have a steel stomach and dive into the common. If you can get shares for $1.10, there is some favorable risk/reward their with a tight stop loss. Beyond that, a break above $1.20 could also trigger a good entry (also with a tight stop). Catalyst Pharmaceutical Partners, Inc. is a development-stage biopharmaceutical company focused on the development and commercialization of prescription drugs targeting diseases of the central nervous system with a focus on the treatment of addiction and epilepsy.