PEP Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones

• PEP’s price dropped 1.38% to $150.52, but options data shows heavy call open interest at $155 and $152.50.
• A $140 put block trade (30,000 contracts) hints institutional confidence in downside support.
• RSI at 75.43 suggests overbought conditions, while Bollinger Bands show $147.77 as near-term support.

Here’s the takeaway: PEP’s options market is pricing in a bullish bias, with heavy call buying and a major block trade at $140. But the stock’s 1.38% drop today and overbought RSI mean volatility could swing either way. Let’s break down what this means for traders.What the Options Chain Reveals About Market Sentiment

The options market is a goldmine for hidden signals. Right now, PEP’s open interest tells a story of cautious optimism. For Friday expiration, the top call strikes are clustered at $155 (OI: 1,481) and $152.50 (OI: 1,009), while puts dominate at $150 (OI: 2,446). This suggests two things: bulls are eyeing a push toward $155, and bears are bracing for a potential pullback to $150.

But here’s the kicker: A massive block trade of 30,000 puts at $140 (expiring 2025-10-17) is a red flag. When institutions sell puts at such a low strike, they’re often betting the stock won’t fall below that level. Think of it like a safety net—someone’s willing to buy PEP at $140 if the price collapses. That could mean a floor exists below today’s $150.45 low.

The News That Could Shift the Narrative

PepsiCo’s recent headlines are a mixed bag. On the positive side, its climate resilience platform and Global Farmer Awards highlight sustainability efforts, which could boost ESG-driven investor interest. The 11% Celsius stake and new CFO from Walmart add strategic intrigue. But third-quarter profit declines and Coca-Cola’s outperformance in volume growth raise questions about pricing power.

Here’s the catch: The options market isn’t pricing in these fundamentals directly. Instead, it’s reacting to short-term volatility. The $155 call OI suggests traders expect a rebound off the $151.33 support level (30D support). If PepsiCo’s revenue growth story holds, this could fuel a breakout. But if profit pressures persist, the $147.77 middle Bollinger Band might become a battleground.

Actionable Trade Ideas for PEPFor Options Traders:

• Buy PEP240419C155 (Friday expiration): With $155 as the top call strike, this option could benefit from a short-term rebound. Set a stop below $152.50 (next support level).
• Sell PEP240419P150 (Friday expiration): The heavy put OI at $150 implies a test of this level could trigger buying. If PEP holds above $150, the puts could decay in value.

For Stock Traders:

• Entry near $151.33 (30D support): If PEP bounces off this level, target $155 (call-heavy zone) or $160 (Bollinger upper band at $158.79).
• Hedge with PEP240419P140: The block trade at $140 could act as a floor. If the stock drops below $150, this strike might offer downside protection.

Volatility on the Horizon

The next 72 hours will be critical. PEP’s price action near $151.33 and $152.50 will determine whether the bullish options bias plays out. If the stock holds above $147.77 (middle Bollinger Band), the $155 call-heavy zone becomes a realistic target. But a breakdown below $147.77 could trigger a test of the $136.76 lower Bollinger Band—a level that would likely force a reevaluation of the trade.

Final Take: PEP’s options market is a tug-of-war between bulls eyeing $155 and bears bracing for $150. The block trade at $140 adds a wildcard. For now, the data leans bullish—but with a tight leash. If you’re in, keep stops close. If you’re on the sidelines, watch the $151.33 support. Either way, this stock isn’t done making headlines.