PEP's Options Signal $140 Floor as Bulls Target $150+ Breakout – Here's How to Play It

• PEP trades at $141.95, down 0.64% with RSI near oversold territory (21) and Bollinger Bands squeezing near $141.86
• Options data shows 1931 open calls at $149 (Friday expiry) vs 588 puts at $140, with a put/call ratio of 0.64 (bullish skew)
• Block trade of 30,000 puts at $140 (PEP20251017P140) hints at institutional floor-betting ahead of October expiry

Here’s the takeaway: PEP’s options market is pricing in a high-probability bounce off $140 with upside catalysts at $149–$155. The technicals and options flow align on a short-term rebound, but long-term bulls need to watch if this breaks below $141.42. Let’s break down why this $140–$150 range is the battleground.

The Options Playbook: Calls at $149, Puts at $140, and a Whale’s Bet

The options chain tells a clear story. For Friday expiry, 1931 open calls at $149 ($149 strike) dwarf the next level at $155 (1698 OI). That’s not random—it’s a crowd-sourced bet that PEP will snap back above $143.20 (today’s high) and test $149.38 (middle Bollinger Band).

But here’s the twist: The puts aren’t just defensive. 588 open puts at $140 (Friday expiry) and a massive block trade of 30,000 puts at the same strike suggest someone (or some algorithm) is hedging against a drop below $141.86. Think of it like a safety net: If PEP breaks the lower Bollinger Band, these puts could create a short-term floor.

The risk? If the stock gaps below $141.42 (intraday low), the $140 puts might get overwhelmed. But for now, the options market is pricing in a $140–$149 trading range with a bullish bias.

News Flow: Rebrand, Leadership, and Snack Innovation Fuel Long-Term Optimism

PepsiCo’s recent headlines are all about reinvention. The corporate rebrand to emphasize snacks and nutrition isn’t just marketing—it’s a strategic pivot to diversify beyond cola. Pair that with Lay’s going “no artificial flavors” and a $585M Celsius stake, and you’ve got a product pipeline that could drive long-term growth.

But here’s the catch: The third-quarter earnings showed profit declines due to input costs. That explains the short-term bearishness (RSI at 21, MACD -0.25). The options market isn’t ignoring this—it’s hedging the near-term pain while betting on the long-term snack story.

Actionable Trades: Calls at $149, Puts at $140, and a Core Buy Zone

For options traders:

• Bullish play: Buy PEP20251017C149 (Friday expiry) if PEP closes above $143.20 today. The 1931 OI suggests strong demand at this strike.
• Bearish hedge: Buy PEP20251017P140 (Friday expiry) if PEP dips below $141.42. The block trade here could create a short-term floor.

For stock investors:

• Entry: Consider buying PEP near $141.85 (lower Bollinger Band) if it holds.
• Targets: First resistance at $149.38 (middle Bollinger Band), then $151.33 (30D support/resistance).
• Stop: Below $141.42 invalidates the bullish case.

Volatility on the Horizon: Balancing Short-Term Pain and Long-Term Gain

The next two weeks will test PEP’s resolve. The $140 puts and $149 calls form a tight trading range, but the 30D moving average at $146.51 and 200D at $142.49 suggest a longer-term bull case. If PEP can hold above $141.85 and break through $143.20, the $149–$155 call-heavy zone could ignite.

But don’t ignore the risks. The RSI at 21 is screaming for a rebound, but a breakdown below $141.42 would force a reevaluation. For now, the options market and technicals are in sync: A $140 floor and $149 ceiling define the immediate battlefield. Play it smart—short-term volatility is likely, but the long-term snack story is still intact.