PEP's Bullish Options Setup: Why $150 Calls and $140 Puts Signal a High-Probability Trade

• PEP trades at $145.83, down 0.34% from its 52-week high of $146.33
• Options data shows 3x more open interest in calls than puts near key strike levels
• Block traders sold 30,000 puts at $140 in October, hinting at support

Here's what I see: PEP is sitting at a technical crossroads. The price is clinging to its 30-day moving average while options market makers are loading up on $150 calls. This isn't random – it's a setup.

The Options Imbalance: A Bullish Playbook

Let's start with the numbers. This Friday's options chain shows 1,034 open $150 calls (PEP20251128C150) – the highest concentration of call open interest. That's 30% more than the next strike. Meanwhile, puts are clustered at $141 (PEP20251128P141) with 912 open contracts.

This tells me two things:

• Institutional players are hedging against a potential $145.83 break
• Retail traders are betting on a $150 breakout

The block trade from October – 30,000 puts sold at $140 (PEP20251017P140) – adds context. Big players are betting PEP won't fall below that level. Combine that with Bollinger Bands showing the lower bound at $140.26, and we have a potential floor.

The News Vacuum: Technicals Take Center Stage

No recent headlines have moved the needle on PEP. That's actually helpful. Without news to muddy the waters, we can focus purely on the technical setup.

Here's the rub: PEP's RSI at 59.65 is in neutral territory, but the MACD histogram is turning positive. This suggests momentum could flip bullish soon. The 200-day moving average at $142.26 is acting as a strong support line – if price holds here, the bulls gain ground.

Actionable Trades for Today

For options traders:

• Aggressive Play: Buy PEP20251128C150 calls if price breaks $146.34 (intraday high). Target $152.50 by Friday's close
• Conservative Play: Buy PEP20251205C152.5 calls for a longer timeline. These have 953 open contracts and could benefit from a post-Thanksgiving rally

For stock traders:

• Entry: Consider buying near $142.79 (30-day support) with a stop below $140.26
• Target: Aim for $146.34 first, then $148.50 if the $150 call buyers are right

Bearish players should focus on PEP20251128P145 (829 open contracts). But with the put/call ratio at 0.655, I'd lean bullish unless price drops below $144.78 (intraday low).

Volatility on the Horizon: Positioning for PEP's Next Move

The key here is timing. If PEP breaks above $146.34 today, the $150 calls become a high-conviction trade. But if it fails to hold $142.79, the $140 puts could see a surge in demand.

This is a classic textbook setup: technical indicators align with options flow, and block trades confirm key levels. The market is pricing in a $150 target by November 28th – and I think it's achievable if volume picks up.

Remember: Options are a bet on direction and time. With Thanksgiving weekend approaching, volatility could spike. Position yourself to take advantage of that – whether through calls, covered calls, or even a bullish diagonal spread with the December 152.5 calls.