Viatris Inc. (VTRS) is a global pharmaceutical company that has faced a price limit for the last five years. The stock price increased from around $10 in late 2024 to nearly $13.55, but it hit resistance at this long-established level. The $13.55 mark has been a strong resistance point over the years, holding steady through 2020, 2021, and into 2022. Even with its recent rise, Viatris is still below this key level, testing traders’ patience. After reaching $13.55, the stock fell to $12.84, a decline of 2.36%. This drop suggests that traders who bought in earlier are selling their shares, creating pressure at the resistance point. Traders are now trying to figure out if this decrease means a pause before another attempt to rise or if it points to a deeper pullback. A critical support area exists between $12.20 and $12.40, which will need to hold firm for a new challenge against the $13.55 level. Patience is important as VTRS explores its next steps. It could build a base for a breakout or confirm that the recent rally happened too soon. If VTRS breaks above $13.55 with strong momentum, it may move towards $15 or $16. Until then, the resistance remains strong. At the $13.55 resistance level, Viatris presents a clear opportunity for options traders. The stock’s impressive climb from late 2024 has paused at a long-held ceiling, making it a great setup for strategies that take advantage of a slowdown or reverse. With the recent rejection near the resistance, it may be wise to consider trades that profit from the stock’s inability to rise further in the short term. For those who think the resistance will hold, a bear call spread could be a solid trade. You could sell the February $14 call and buy the February $15 call to manage risk, earning a premium if VTRS remains below $14 until expiration. This strategy benefits from both a price pullback and sideways movement, reflecting the selling pressure from traders who bought at these levels in 2021 and 2022. The upcoming earnings report in late February adds another factor to consider, and we are already seeing implied volatility increase. The broader healthcare sector, as shown by the XLV index, has started 2026 slowly after a decent performance last year; this may mean Viatris lacks the sector momentum to break through. This overall situation supports taking a more cautious view on the stock in the near term. Looking at the options market, there is significant open interest at the February $14 and $15 strike prices, indicating this level is a key battleground. Many traders are either betting on a breakout or, like us, selling those calls to take the opposite position. Recent data shows that put option volume is rising compared to call volume, signaling that more market players are preparing for a potential drop or seeking protection. If you think the recent rally still has strength, adopting a defined bullish position is safer than buying the stock directly. A bull call spread—like buying a March $13 call and selling a March $15 call—would allow for upside in case of a breakout while limiting losses if resistance holds. It’s essential to watch for the stock’s ability to maintain the $12.20 support zone on any pullback for this option to work out. Looking back at 2025, we saw Viatris struggle to gain momentum even with positive news when trading between $10 and $11. This history of price resistance makes the current battle at this significant level even more crucial. Until the stock demonstrates it can break through with strong volume, we should be cautious of the resistance that has remained in place for years.

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