PEP Bulls Stack Up at $160 as Puts Dwell at $150 — Here’s How to Play the Upcoming Options Expiry

• PEP nears $153.67 as bulls build OI at $160.
• Put-heavy open interest signals downside caution at $150.
• Q1 earnings beat and new buybacks fuel upside momentum.
• Strategic options setups and entry levels for April 10 and 17 expiries.

The market is whispering about Pepsico right now — and it’s not just the news. While the stock sits at $153.67, slightly above where it opened, the options market is telling a clearer story: bulls are stacking up for the $160 level while bears are eyeing a potential drop to $150. That means there's both opportunity and risk for those who know where to look.

Bullish OI at $160, Cautious Puts at $150 — What It Means for PEP

The OTM call options with the highest open interest are all clustering around the $160 strike for this week’s expiry, with 3,422 contracts open. That’s not just noise — it’s a sign of institutional or large institutional players expecting a move higher. If the stock breaks $160, it could trigger a cascade of stop-losses and covering plays, especially with this Friday’s expiry (April 10) fast approaching.

On the other side, the put open interest is heavy at $150 — 1,591 contracts — with another 3604 open for next week’s expiry. That’s not a bullish number. The put/call ratio for open interest sits at 0.75, which isn’t extremely bearish, but it does indicate a slight defensive tilt. Investors are hedging against a potential pullback, especially with RSI at 43.13, which suggests the stock could still consolidate before making a stronger move.

No major block trades were reported for today — so it’s not a whale game, but the open interest distribution is still telling. The $160 call is the most liquid, and with the stock flirting with the upper Bollinger Band at $161.89, we could see some aggressive buyers stepping in if we see a push past that level.

Big News Favors Bulls — But Caution Still Advised

Over the last few days, PEP has been all over the headlines for the better. Q1 earnings beat estimates, a $5B buyback announced, a new plant-based line launched, and a big strategic partnership with Amazon. On top of that, Pepsico’s CFO changed and it’s investing in a new R&D facility in Singapore — all signs of strategic momentum.

Analysts are also upgrading the stock, with price targets pushing toward $170 and above. But there’s a catch. The RSI isn’t screaming overbought yet, and the MACD is still in bearish territory (-1.36), even with a positive histogram. That means we need a break of $160 to confirm the bullish story.

Investor perception is key here. A strong earnings report and new market expansions can create a flywheel effect — but only if the price holds. If it dips below $153.67, support kicks in at $151.22 and $150.00. A break under $150 could flip the script.

Here’s How to Play PEP on This Week and Next

If you’re bullish and ready to play the next leg up, consider the following setups:

• For this Friday (Apr 10): Buy the PEP20260410C160 at current levels. This option is already popular and offers leverage if the stock moves above $160. A breakout there could mean a 10%+ move for the option before it expires.
• For next Friday (Apr 17): Buy the PEP20260417C160 if you expect the stock to gather steam over the next few days. With 16,943 open interest, this is a liquid and active contract.

If you're more bearish or want to hedge a long position, consider the PEP20260410P150 for short-term protection. It’s a low-cost put with a decent delta and a solid number of contracts open.

For stock traders:

• Consider entering near $152.50 if the stock pulls back to test the 30-day support zone. A bounce off there could be your entry.
• If the stock breaks $160, consider exiting around $162–163 to lock in gains or roll into longer-dated calls.

Volatility on the Horizon — Bulls and Bears Both Have a Shot

The next few days are crucial for PEP. Strong options positioning at $160 and $150 means we could see a decisive move either way. The news flow is on the bullish side, but the technicals are still in a balancing act.

If you’re a trader, the key is to stay nimble. Play the $160 call if you believe in the momentum. But keep an eye on the $150 level. If that breaks, it might be time to reassess.

In short, PEP is at a crossroads — and the options market is already betting on the direction it might take. The question is: are you ready to follow?