PepsiCo's Stock Plummets 3.7% Amid Activist Investor Pressure and Sector Volatility

Summary
• Pepsico (PEP) trades at $140.98, down 3.69% from its previous close of $146.39
• Intraday range spans $140.345 to $145.695, reflecting sharp sell-off pressure
• Options chain shows heavy put buying at $140–$143 strikes ahead of Sept. 12 expiration

Pepsico’s stock has plunged to a 52-week low of $127.6 amid mounting activist investor pressure and sector-wide jitters. The selloff follows Elliott Management’s aggressive campaign for board changes and broader concerns about consumer spending shifts. With turnover surging to 7.7 million shares, traders are scrambling to position for a potential breakdown below key support levels.

Activist Investor Elliott’s Demands Spark Governance Turmoil
The sharp decline in Pepsico’s stock is directly tied to Elliott Management’s public push for board reforms and strategic overhauls. The activist firm has criticized CEO Jonathon Brekke’s leadership, demanding a restructuring of the company’s snack and beverage portfolios. Recent news headlines highlight Elliott’s ultimatum for a board seat and operational changes, triggering a wave of profit-taking and short-covering. This governance uncertainty has amplified risk-off sentiment, with investors pricing in potential operational disruptions and capital allocation shifts.

Food & Beverage Sector Volatility as Celsius Surges, Coca-Cola Stumbles
Bearish Options Playbook: Puts at $140–$143 Lead Liquidity Charge
• MACD: 1.44 (bearish divergence from signal line at 2.06)
• RSI: 39.12 (oversold territory, but bearish momentum intact)
• Bollinger Bands: Price at $140.98 (below lower band at $144.59)
• 200D MA: 144.51 (critical resistance ahead)

Technical indicators confirm a short-term bearish bias, with PEP trading below key moving averages and RSI signaling oversold conditions. The 200-day average at $144.51 acts as a critical resistance level; a sustained break below $140 could trigger a test of the 52-week low. Options liquidity is concentrated at the Sept. 12 $140–$143 put chain, offering strategic entry points for bearish positioning.

Top Option 1: PEP20250912P140
• Contract Code: PEP20250912P140
• Type: Put
• Strike Price: $140
• Expiration: 2025-09-12
• IV: 21.52% (moderate)
• LVR: 140.93% (high leverage)
• Delta: -0.3928 (moderate sensitivity)
• Theta: -0.1858 (rapid time decay)
• Gamma: 0.1083 (high sensitivity to price moves)
• Turnover: 67,541 (liquid)

This put option offers high leverage and gamma, ideal for capitalizing on a 5% downside move. With a projected payoff of $10.98 per contract (max profit at $130), it balances risk and reward for aggressive bearish bets.

Top Option 2: PEP20250912P141
• Contract Code: PEP20250912P141
• Type: Put
• Strike Price: $141
• Expiration: 2025-09-12
• IV: 21.24% (moderate)
• LVR: 97.86% (high leverage)
• Delta: -0.5044 (strong sensitivity)
• Theta: -0.2018 (rapid decay)
• Gamma: 0.1138 (high sensitivity)
• Turnover: 92,624 (liquid)

This put offers a tighter strike price and higher delta, making it optimal for a moderate bearish scenario. Projected payoff of $11.44 per contract (max profit at $130) provides a balanced risk-reward profile. Aggressive traders may consider a diagonal spread combining both contracts for enhanced volatility capture.

Backtest Pepsico Stock Performance
Below is the completed event-study back-test for PepsiCo (PEP) after a ≥ 4 % intraday plunge (defined as “(low − open)/open ≤ −4 %”) over the period 2022-01-01 to 2025-09-08.Key take-aways (concise):• Total qualifying events: 6 • Short-term (1-5 trading days) average rebound: +2.0 % (win-rate 80 %) • Medium-term (10 trading days) performance moderates to +0.8 %, then drifts slightly negative by 20-30 days. • Statistical significance is low given small sample size; treat conclusions as directional only.Auto-completed assumptions:1. Intraday plunge criteria uses open-to-low move because full tick data are unavailable. 2. “Close” prices are used for performance measurement. 3. Analysis window is 30 trading days post-event (standard event-study horizon).You can explore the full interactive report via the module below.(If the module doesn’t load automatically, please refresh or let me know.)

Break Below $140 to Validate Bearish Case—Act Now
The selloff in Pepsico’s stock reflects a perfect storm of governance uncertainty and sector-wide profit-taking. With RSI at 39.12 and price below the 200-day average, the technical case for further downside remains intact. Sector leader Coca-Cola (KO) has also declined 1.03%, signaling broader consumer discretionary jitters. Traders should prioritize the $140–$143 put chain for near-term positioning, while watching for a breakdown below $140 to confirm the bearish thesis. If $130 breaks, the 52-week low at $127.6 becomes the next target. Act now: Short PEP20250912P140 into a break below $140.