Celsius Holdings Surges 6.1% on Strategic PepsiCo Partnership and Distribution Expansion

Summary
• Celsius Holdings (CELH) surges 6.09% to $63.33, hitting its 52-week high of $63.49
• PepsiCo acquires $585M convertible preferred stake, elevating ownership to 11%
• Alani Nu joins PepsiCo distribution system; Rockstar Energy acquired by Celsius
• Options frenzy: 2025-09-05 calls at $64–$65 strike prices see 300%+ turnover spikes
Celsius Holdings’ stock is in a tailwind as a landmark partnership with PepsiCo reshapes its energy drink portfolio. The $585 million convertible preferred investment, expanded distribution channels, and brand acquisitions have ignited a 6.1% intraday rally. With the stock trading near its 52-week high and options volatility spiking, the move reflects investor confidence in the strategic alignment of two beverage giants.

PepsiCo’s Strategic Investment and Distribution Overhaul Ignite CELH
Celsius Holdings’ 6.1% surge is directly tied to its landmark agreement with PepsiCo, which includes a $585 million convertible preferred investment, expanded distribution of Alani Nu via PepsiCo’s network, and the acquisition of Rockstar Energy. The deal positions Celsius as PepsiCo’s U.S. energy drink captain, granting access to PepsiCo’s retail and foodservice channels. PepsiCo’s 11% stake on an as-converted basis and board seat further align incentives. The partnership’s emphasis on scaling a 'total energy portfolio'—combining CELSIUS, Alani Nu, and Rockstar—has triggered a re-rating of Celsius’ growth potential, with investors pricing in expanded market share and operational synergies.

Beverages Sector Gains Momentum as PepsiCo Leads Strategic Expansion
The non-alcoholic beverages sector, led by PepsiCo (PEP), is witnessing a strategic realignment as Celsius Holdings leverages its partnership to expand distribution. PepsiCo’s 0.95% intraday gain underscores the sector’s optimism, with investors betting on PepsiCo’s distribution expertise and Celsius’ brand portfolio. The sector’s focus on functional and lifestyle beverages aligns with broader consumer trends toward health-conscious consumption. Celsius’ move to integrate Alani Nu into PepsiCo’s network mirrors the sector’s shift toward multi-brand strategies to capture diverse demographics, particularly health-focused and traditional energy drink consumers.

Options Playbook: Capitalizing on CELH’s Breakout with Gamma-Driven Calls
• 200-day average: $35.73 (well below current price)
• RSI: 76.99 (overbought territory)
• MACD: 3.80 (bullish divergence)
• Bollinger Bands: $68.49 (upper), $41.77 (lower)—price near upper band
CELH’s technicals suggest a short-term overbought condition but a long-term bullish trend. The RSI at 76.99 and MACD above zero indicate momentum, while the stock trades near its 52-week high. Key support/resistance levels at $45.06–$26.99 suggest a potential breakout. The AdvisorShares Vice ETF (VICE) could offer leveraged exposure if the sector gains traction.
Top Options Contracts:
• CELH20250905C64
- Strike: $64, Exp: 2025-09-05, IV: 44.26%, Leverage: 56.01%, Delta: 0.3978, Theta: -0.2249, Gamma: 0.0938, Turnover: 93,254
- IV (Implied Volatility): High volatility suggests strong price expectations
- Leverage: 56% amplifies gains if the stock breaks $64
- Delta: 0.40 indicates moderate sensitivity to price moves
- Theta: -0.2249 shows rapid time decay, favoring quick moves
- Gamma: 0.0938 means delta increases as the stock rises
- Turnover: High liquidity ensures easy entry/exit
- Payoff at 5% upside ($66.49): $2.49 per contract
- Why it stands out: High leverage and gamma make it ideal for a short-term breakout
• CELH20250905C65
- Strike: $65, Exp: 2025-09-05, IV: 46.65%, Leverage: 72.10%, Delta: 0.3203, Theta: -0.1983, Gamma: 0.0826, Turnover: 70,430
- IV: 46.65% balances risk and reward
- Leverage: 72% offers aggressive upside if the stock clears $65
- Delta: 0.32 suggests moderate directional exposure
- Theta: -0.1983 indicates manageable time decay
- Gamma: 0.0826 ensures delta gains as the stock rises
- Turnover: Strong liquidity supports active trading
- Payoff at 5% upside ($66.49): $1.49 per contract
- Why it stands out: Aggressive leverage and moderate delta make it a high-reward play for a sustained rally
Trading Outlook: Aggressive bulls should target CELH20250905C64 into a break above $64.50, with a stop-loss below $62.50. For a longer-term play, CELH20250905C65 offers 72% leverage if the stock consolidates above $65.

Backtest Celsius Holdings Stock Performance

CELH’s Breakout: A Strategic Inflection Point for Energy Drink Giants
Celsius Holdings’ 6.1% surge is a watershed moment, driven by PepsiCo’s strategic investment and distribution overhaul. The stock’s proximity to its 52-week high and overbought RSI suggest a potential consolidation phase, but the long-term bullish trend remains intact. Investors should monitor the $63.50–$64.50 range for a breakout confirmation. PepsiCo’s 0.95% gain as a sector leader reinforces the beverage sector’s momentum. For those seeking leverage, CELH20250905C64 and CELH20250905C65 offer high-gamma plays on a continued rally. Action Step: Buy CELH20250905C64 into a break above $64.50, with a target of $66.50 and a stop at $62.50.