This Unusually Active Avantor Put Raises the Question: Who’s the Patsy?

Group 1 - The unusual options activity for Avantor (AVTR) indicates a significant interest in the $9 put option expiring on January 16, 2026, with a Vol/OI ratio of 437.51, suggesting heightened market activity and sentiment [1][2] - The volume of the $9 put option reached 73,647, which is more than 11 times the 30-day average, indicating a strong market reaction possibly linked to increased calls for a class action lawsuit against the company [2] - The trading activity suggests a divide in investor sentiment, with some believing the stock will not fall below $9, while others seek downside protection as the stock may decline further [3] Group 2 - The breakdown of the put trades shows that four trades accounted for 99.6% of the volume, with prices ranging from $0.05 to $0.10 per contract, indicating significant investor engagement [5] - Selling the $9 put contracts for $0.05 could yield an annualized return of 6.8%, presenting a potential income strategy for investors [7] - If the stock falls to $8.95, the breakeven point, investors may face assignment and be required to purchase shares at $9, which poses a risk if the stock continues to decline [8] Group 3 - The stock has never traded below $5 since its IPO in May 2019, with a historical low of $6.66 in March 2020, suggesting a strong support level above this threshold [9]