PEP Options Signal Bullish Bias: Target $152.50 as Calls Dominate and Institutional Buyers Pile In

• PEP trades at $148.74, up 0.51% with volume surging past 2.7M shares
• Open interest shows 0.66 put/call skew, with top call OI at $150 and $152.5 strikes
• 2.5M-share buys by Schwab and Franklin Resources highlight institutional confidence

Here’s what the data tells us: PEP is perched on a short-term bullish trend with technicals and options flow aligning for a potential $152.50 breakout. The risk? A breakdown below $145.31 could trigger selling pressure.

Where Institutional Money and Options OI Are Aligned

The options market is shouting bullish. For Friday expiration, 1,387 contracts of PEP20251128C150 and 960 contracts of PEP20251128C1525 dominate call open interest. Meanwhile, puts are heavily concentrated at $145 (1,253 OI) and $141 (928 OI), but the 0.66 put/call ratio suggests bears aren’t in control.

The big block trade—30,000 puts sold at PEP20251017P140—hints at hedging by large players, not panic. Combine this with the RSI at 70.7 (overbought territory) and MACD crossing above its signal line, and you’ve got a recipe for a short-term rally. But don’t ignore the Bollinger Bands: a close below the middle band at $145.31 could invite profit-taking.

Institutional Buys vs. Trims: Why the Bull Case Stands

PEP’s news flow is a mixed bag but leans positive. Yes, 1,850 layoffs are a headwind, but Schwab’s 2.5M-share buy, Franklin’s identical move, and the Swiss National Bank’s entry signal long-term conviction. The dividend hike to $1.42 and new product launches (Prebiotic Cola, two new sodas) add to the narrative.

Here’s the kicker: 14 of the 30 news items highlight new institutional stakes or increased holdings. That’s not noise—it’s a coordinated bet on PEP’s resilience. Even as some firms trim positions, the overall trend shows more buyers than sellers.

Actionable Trades: Calls for Aggressive, Stock for Cautious

For options traders: Buy PEP20251128C150 (strike at $150, expiring Friday) if PEP holds above $147.23. For a longer play, PEP20251205C1525 (strike at $152.5, next Friday) offers leverage if the stock breaks out. Both strikes align with heavy OI and key resistance levels.

Stock buyers: Consider entries near $145.95 (30D support) with a stop just below $145.31. If PEP clears $148.82 (intraday high), target $152.50—the level where call OI peaks and Bollinger Bands suggest a ceiling.

Volatility on the Horizon

The next 72 hours will test PEP’s resolve. A close above $149.40 (Bollinger Upper Band) could trigger a short squeeze, while a drop below $145.31 might invite algorithmic selling. Either way, the options flow and institutional bets suggest this isn’t a bearish setup—just a volatile one. Stay nimble, and let the data guide your exit as much as your entry.