AVNT's Emerging Base Formation: Volume and Derivatives Signals Point to Breakout Potential

The stock of Avient Corporation (AVNT) has recently exhibited patterns in trading volume and derivatives activity that suggest the formation of a foundational base, potentially setting the stage for a breakout. By analyzing these leading indicators, investors can gain insight into the stock's trajectory and the broader institutional and retail sentiment shaping its market dynamics.

Volume Trends: A Foundation in the Making

Recent trading volume data for AVNT reveals a notable uptick in activity, particularly in late December 2025. On December 19, the stock traded 1,690,000 shares, and on December 18, it reached 1,048,200 shares. These figures represent a significant increase compared to earlier November volumes, such as the 197,200 shares on November 28 and 518,500 shares on November 26. The surge in volume during the end-of-year period indicates heightened liquidity and investor engagement, which are critical components of base formation. Such patterns often precede price breakouts, as increased participation validates the stock's relevance in the market.

Derivatives Activity: Mixed Signals and Sentiment Shifts

Derivatives data for AVNT paints a nuanced picture. As of Q4 2025, total open interest (OI) for AVNT options rose by 0.2% to 445 contracts, though it remains below its 52-week average of 490 contracts. Call open interest increased by 0.7% to 148 contracts but declined by 20.9% over five days, while put open interest surged 21.7% to 28 contracts before plummeting by 89.1% in the same period. This sharp drop in put OI reflects a strong shift toward bullish sentiment.

The low open interest in specific options, such as the AVNT260320C00040000 call (7 contracts) and AVNT260618P00040000 put (1 contract), further underscores limited speculative positioning. However, the broader market context shows AVNT gaining traction in futures and perpetual contracts, aligning with Q4's altcoin-driven speculation trends. This suggests that while retail options activity remains muted, institutional and futures markets are increasingly allocating capital to AVNT, signaling confidence in its potential.

Institutional Positioning: Accumulation and Strategic Moves

Institutional ownership of AVNT stands at 95.48%, with key players like iSAM Funds UK Ltd and Dimensional Fund Advisors LP maintaining significant stakes. Recent insider and institutional trading activity reveals a mixed but telling trend: while entities like P2 Capital Partners LLC reduced holdings, others, including Entropy Technologies LP, increased their positions. This divergence highlights both caution and opportunistic accumulation, particularly as Avantis (AVNT) navigated a price surge and TVL exceeding $100 million.

Notably, AVNT's ecosystem enhancements-such as fee discounts for stakers and milestone-based buy-backs-have incentivized long-term holding and platform activity. These measures, combined with its listing on major U.S. platforms, have broadened accessibility and attracted speculative capital, further reinforcing its breakout potential.

Conclusion: A Convergence of Indicators

The interplay of rising trading volume, shifting derivatives sentiment, and institutional positioning suggests AVNT is nearing a breakout phase. While the stock's open interest remains below historical averages, the sharp decline in put OI and the bullish put/call ratio indicate a growing appetite for upside potential. Institutional accumulation, coupled with ecosystem-driven incentives, adds a layer of fundamental support.

Investors should monitor AVNT's price action against these volume and derivatives signals for confirmation. A sustained increase in open interest, particularly in call options, alongside a breakout above key resistance levels, could validate the emerging base and trigger a meaningful upward move. However, the mixed derivatives data also underscores the need for caution, as volatility and liquidity shifts remain inherent risks in speculative assets like AVNT.