PEP's Call-Heavy Options Setup and $145 Bull Call Spread: A Strategic Play for January 2026

• PEP trades at $144.34, up 0.39% from $143.78, with volume at 2.04M shares
• Options open interest shows 2.73M calls vs 1.58M puts (ratio: 0.58), favoring bullish bets
• Block trade of 30K puts at $140 (expiring Oct 17) hints at bearish positioning

The market is whispering about PEP’s upside potential. With a call-heavy options chain and technicals pointing to a potential rebound, today’s $144.34 price sits just above key support at $143.6. But here’s the twist: while bulls are stacking up at $145–$155 strikes, a recent block trade suggests some big players are hedging for a drop. Let’s break it down.The OTM Options Imbalance and Whale Moves

PEP’s options chain is a chessboard of conflicting signals. For this Friday’s expirations, the top call open interest piles up at $145 (525 contracts), $147 (492), and $148 (418), while puts dominate at $142 (595) and $141 (589). But the real story is next Friday’s expirations: PEP20260109C155 (1,653 contracts) dwarfs all others, showing heavy conviction for a $155+ move by January 9.

The block trade of 30K puts at PEP20251017P140 (selling downside protection) is a red flag. It suggests a whale is hedging a large stock position, possibly anticipating a short-term dip. Yet the overall call/put ratio (0.58) still favors bullish bets. This creates a paradox: bulls are stacking up for a breakout, but bears are quietly preparing for a pullback.

News Flow: Restructuring, Lawsuits, and Institutional Moves

PEP’s recent news is a mixed bag. The $4B product purge and plant closures signal cost-cutting, but the partnership with Celsius Holdings and new snack flavors could spark innovation-driven optimism. Meanwhile, institutional activity is split: Perigon Wealth Management bought 12K shares, while Boston Trust Walden sold.

The Wall Street Zen downgrade to “Hold” and the class-action lawsuit add near-term headwinds. But here’s the kicker: PEP’s stock stabilized after a six-day losing streak, and its price is now testing the 200-day MA ($141.95) and Bollinger Band support ($142.73). If the stock holds above $143.6, the news-driven sell-off could reverse into a buying opportunity.

Actionable Trade Ideas for PEP

1. Bull Call Spread (Jan 9 Expiry): Buy PEP20260109C145 ($145 strike) and sell PEP20260109C155 to cap risk. The $145 call has 525 OI, suggesting strong demand, while the $155 put is the most crowded call. If PEP breaks above $147.69 (middle Bollinger Band), this spread could profit from a $155+ move.
2. Stock Buy at Support: Enter long near $143.6 if PEP holds above its 30D support range. Target $147.69 (middle Bollinger Band) as a first exit, with a stop-loss below $142.73.
3. Bear Put Spread (Caution Play): Buy PEP20260109P142 (595 OI) and sell PEP20260109P140 to hedge against the block trade’s bearish signal. This works if PEP dips below $142.73 but avoids overexposure to a potential rebound.

Volatility on the Horizon

PEP’s path hinges on two factors: whether the $143.6 support holds and how the market digests its restructuring efforts. The call-heavy options chain and institutional buying hint at a potential rebound, but the block trade and legal risks mean volatility isn’t going away. For traders, the $145–$155 call spread offers a structured way to play the upside without full stock exposure. If PEP surprises to the upside, this could be a holiday gift for those who spot it now.