PEP Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 5 Expiry

• PEP trades at $146.44, down 1.1% from its 52-week high of $148.22
• Options market shows 72% more call open interest than puts (ratio: 0.66)
• Bollinger Bands suggest price could rebound toward $150.68 upper band

Here’s what the data tells us: PEP’s price dip today masks a strong underlying bullish setup. Technicals, options flows, and block trades all point to a potential rebound—but timing matters. Let’s break it down.Bullish Sentiment Locked in OTM Calls, Whale Activity at $140

Options traders are piling into calls above $150. For Friday’s expiry (2025-12-05), the PEP20251205C150 and PEP20251205C1525 strikes dominate with 1,365 and 981 open contracts respectively. That’s not just noise—it’s a vote of confidence in a near-term rebound. Meanwhile, puts at $145 (1,163 OI) and $141 (918 OI) hint at downside caution, but the 0.66 put/call ratio tells us bulls are in control.

Don’t ignore the block trade at PEP20251017P140 either. A 30,000-lot sale of puts suggests big players are hedging or accumulating shares at a discount. If PEP dips below $140, that floor could hold—but it’s a long shot.

News Adds Nuance: Earnings Pressure vs. Activist Resolution

Two stories are shaping PEP’s narrative. First, Piper Sandler’s trimmed outlook highlights risks from GLP-1-driven diet shifts and pricing pushback. That’s bearish in the short term. But the nearing settlement with Elliott? That’s a win for management continuity. Investors often cheer these resolutions, even if terms stay secret.

The takeaway? PEP’s fundamentals are messy but not broken. Options buyers are betting the stock will outperform its Q3 hiccups—and the technicals are lining up.

Actionable Trades: Calls for Friday, Puts for Caution

For the aggressive: Buy PEP20251205C150 (strike price $150) if PEP closes above $148.22 by Friday. With the upper Bollinger Band at $150.68, a breakout here could trigger a rally toward $152.50. For longer setups, the PEP20251212C1525 strike (next Friday) offers leverage if the rebound holds.

For the cautious: A short put spread at PEP20251205P145 and PEP20251205P141 could profit if PEP stays above $141.42 (lower Bollinger Band). The block trade at $140 adds a psychological floor.

Stock traders: Consider entry near $142.72 (30D support) with a target at $150.68. If PEP breaks below $141.42, reverse the trade—fast.

Volatility on the Horizon

This week’s options expiry (Dec 5) is a critical test. If PEP holds above $146.13 (today’s low), the 30D MA at $146.87 could act as a springboard. But watch that $141.42 level—it’s not just a technical line; it’s a psychological one. A break there might force the block traders at $140 to step in… or panic.

Bottom line: PEP is at a crossroads. The options market is pricing in a rebound, but earnings headwinds and activist drama add friction. Play it smart—position for the rally, but keep a stop below $141.