AVTR February 2026 Options Begin Trading

Analysis of Avantor Inc (AVTR) options reveals potential strategies for investors: selling the $13.00 strike put offers a possible 11.92% return on cash commitment (17.62% annualized) with a 64% chance of expiring worthless, while a covered call strategy selling the $14.00 strike call could yield a 16.29% total return if the stock is called away, with a 46% chance of the contract expiring worthless and generating a 10.23% return (15.11% annualized).

Analysis

Avantor Inc (AVTR), currently trading at $13.20 per share, presents specific options-based strategies for investors. Selling the $13.00 strike put contract, with a bid of $1.55, offers an alternative entry point at an effective cost basis of $11.45 per share, a discount to the current market price. This out-of-the-money put (approximately 2% below current price) has a 64% probability of expiring worthless, which, if realized, would yield an 11.92% return on the cash commitment, or a 17.62% annualized "YieldBoost". For existing shareholders or those purchasing at current levels, selling the $14.00 strike call contract for a $1.35 premium as a covered call could generate a total return of 16.29% if the stock is called away by the February 2026 expiration. This call strike is approximately 6% out-of-the-money, with a 46% chance of expiring worthless; should this occur, the premium collected would represent a 10.23% additional return, or 15.11% annualized. Notably, the implied volatility for the put is 69%, while the call's implied volatility is 47%, contrasting with Avantor's actual trailing twelve-month volatility of 44%, suggesting a higher risk premium priced into the puts.

Key Decisions for Investors

• Investors interested in acquiring AVTR shares at a lower effective price than the current $13.20 could consider selling the $13.00 strike put, targeting an $11.45 cost basis or a potential 17.62% annualized return if the option expires worthless.
• Current AVTR shareholders seeking to enhance yield might evaluate selling the $14.00 strike covered call, which offers a potential 16.29% total return if called or a 15.11% annualized premium if it expires worthless, while acknowledging the cap on upside potential above $14.00.
• Pay attention to the elevated implied volatility of the $13.00 puts (69%) compared to both the calls (47%) and historical volatility (44%), as this may indicate that puts are relatively richly priced, potentially favoring sellers of these contracts.