First Week of VTRS July 2026 Options Trading

StockOptionsChannel highlights two income-oriented option plays on Viatris (VTRS): selling the July 2026 $10 put at a $0.70 bid would obligate purchase at $10 with a net cost basis of $9.30 versus the current $10.22 (≈2% OTM), carries a 61% probability of expiring worthless and would yield a 7.00% return on cash committed (10.74% annualized) if it does; alternatively, selling the $11 covered call at a $0.50 bid would cap upside at $11 (≈8% premium) and deliver a 12.52% total return if called, with a 46% chance of expiring worthless and a 4.89% premium boost (7.50% annualized). Both contracts show implied volatility near 66% versus a trailing 12‑month realized volatility of 36%, indicating elevated option premiums; StockOptionsChannel will track changing odds and contract histories on its site, and figures exclude commissions and dividends.

Analysis

The article presents two income-oriented option strategies on Viatris (VTRS) around the July 2026 expiration: selling the $10.00 put at a $0.70 bid would obligate purchase at $10.00 with a net cost basis of $9.30 versus the current $10.22 share price (approximately 2% out‑of‑the‑money) and a modeled 61% probability of expiring worthless; if it does expire worthless, the premium equates to a 7.00% return on cash committed or 10.74% annualized, excluding commissions and dividends. On the call side, buying shares at $10.22 and selling the $11.00 covered call at a $0.50 bid caps the sale price at $11.00 (about an 8% premium) and would produce a 12.52% total return if called, with a 46% chance of the call expiring worthless and a 4.89% immediate premium boost (7.50% annualized). Implied volatility for both contracts is ~66% versus a trailing-12-month realized volatility of 36%, indicating option premiums are relatively rich and therefore advantageous to sellers; StockOptionsChannel will track changing odds and contract histories on its site. Key risks reflected in the article are assignment risk on the put if the stock falls below the strike and capped upside for the covered-call seller if shares rally materially, and all quoted returns exclude commissions and dividends.

Key Decisions for Investors

• Consider selling the July 2026 $10 put only if you are willing to own VTRS at an effective cost basis of $9.30 and find a 7.00% yield (10.74% annualized) attractive given the 61% modeled chance of expiring worthless,
• Consider a buy-and-write (purchase at $10.22 + sell $11 call) to generate a potential 12.52% capped return if called, but accept that upside beyond $11 is surrendered and there is only a 46% chance the call expires worthless,
• Size positions conservatively and favor option-selling size discipline because implied volatility (~66%) is materially above realized volatility (36%), monitor IV and the tracked odds on StockOptionsChannel, and be prepared to manage assignment risk or roll contracts as market conditions change