PepsiCo (PEP) Options Signal Bullish Momentum: Calls Dominate as Puts Highlight 141 Support – Here’s How to Play It

• Current price: $149.61, up 0.58% with volume surging to 2.77M.
• Call open interest crushes puts (278K vs. 180K), with heavy demand at $152.5 and $150 strikes.
• A 30,000-lot block trade sold PEP20251017P140 puts, hinting at strategic support plays.

Here’s the takeaway: PEP is perched on a short-term bullish trend, with options data and technicals aligning for a potential breakout above $149.62 (Bollinger Upper Band). The risk? A drop below $145.37 (20-day MA) could trigger panic. But for now, the call-heavy positioning and whale activity scream "price is finding buyers above 146."

Bullish Calls and Bearish Puts: A Battle for $150

The options chain tells a clear story. This Friday’s top OTM calls are clustered between $150 and $155, with PEP20251205C1525 (OI: 1,332) and PEP20251205C150 (OI: 1,076) leading the charge. That’s not random—big money is hedging an upside push. Meanwhile, puts are concentrated at $141 and $135, with PEP20251205P141 (OI: 810) acting as a gravity well for downside protection.

But here’s the twist: A massive block trade sold 30,000 contracts of PEP20251017P140 (expiring Oct 17) for $340,000. Why? It suggests institutional players are either unwinding older hedges or signaling confidence that PEP won’t crater below $140. Combine that with the RSI at 69.52 (overbought but not extreme) and MACD crossing above zero, and you’ve got a recipe for a short-term rally.

No Major News, But Options Are the New Narrative

There’s no recent headline noise about PepsiCo’s Fizz-Whiz 2.0 or a PR disaster. Yet the market is moving. That means options activity—not earnings or product launches—is driving sentiment. The lack of news is actually a feature here: it removes noise, letting technical setups and institutional bets take center stage. Think of it like a chess game where the pieces are already in motion, and you’re just trying to predict the checkmate.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders, the most compelling plays are:

• PEP20251205C1525 (Dec 5, $152.5 call): With 1,332 contracts in open interest, this strike is a magnet for upside momentum. If PEP breaks above $149.78 (intraday high), this call could see explosive volume.
• PEP20251212P141 (Dec 12, $141 put): A cheaper insurance policy against a drop. Buy this if PEP dips to $146.18 (resistance level) and holds.

For stock players: Consider entries near $146.18 (30D resistance) with a hard stop below $145.37 (20-day MA). The first target is $152.5 (call-heavy zone), then $155 (next Bollinger Band level). Use the $141 puts as a trailing stop if the trend falters.

Volatility on the Horizon: Bullish Trends Ahead

The setup is textbook for a short-term rally. Calls are stacked like building blocks above $150, while puts anchor the downside. But don’t get complacent—the RSI isn’t screaming "buy," and the 200D MA ($142.31) is still a distant safety net. If PEP holds above $145.37, this could be the start of a multi-week bull phase. If it cracks, the puts at $141 will become a lifeline. Either way, the options market has already priced in movement. Your job? Ride the wave before it fades.