1 Stock That Just Got BIG News

Dear WallStreetZen Member,

This week, our Smart Leverage Alert centers on Viatris (VTRS).

Viatris is a global pharmaceutical company that quietly supplies medicines to patients in nearly every country on earth — across generics, established brands, and a growing pipeline of its own. And this week it gave the market a fresh reason to pay attention: on July 29, the FDA approved Gwyn Lo, Viatris's once-weekly low-dose-estrogen contraceptive patch, adding another branded product to its lineup.

That approval lands on top of a business that's already firing. Last quarter, Viatris beat expectations and grew its adjusted earnings 18% from a year earlier — the kind of steady execution that had management confident enough to stand by its full-year outlook. Its core business produces roughly $2 billion in cash each year, enough to fund a steady 2.7% dividend.

Our Zen Ratings model confirms the strength. VTRS earns an A rating, which amounts to a Strong Buy recommendation, landing in the top 5% of more than 4,400 stocks. 

Looking at the Component Grades that shape the overall grade, VTRS ranks in the top 15% for Value, the top 10% for Safety, and the top 3% for Growth. That mix points to a financially sound, fast-growing business with real momentum behind it — and Wall Street agrees, with a Strong Buy consensus and an average price target above where the stock trades today.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: (Ticker Name) Long Call

Given the strong fundamental case and the fresh catalyst behind Viatris, here's how we're structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one. 

Instead of committing about $7,144 to own 400 shares outright, four Deep-In-The-Money Calls let you control those same shares for roughly $1,380. 

• The Play: $15 Strike Call (Expiring Jan 15, 2027), 4 contracts
• Delta: 0.8425 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~83% — More than four-fifths of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 3.36x — Every dollar moves 3.4x harder than the stock, while the deep ITM strike still keeps meaningful downside protection versus a naked speculative call.
• The Target: For this position to double (+100%), VTRS only needs to reach approximately $21.60 — a roughly 21% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A 21% move in VTRS stock would be a solid return for shareholders. In these Deep-In-The-Money options, that same move has the potential to double your investment while putting only about $1,380 at risk instead of $7,144.

That's the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

VTRS is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.