PEP Options Signal $140 Put Contingency as Bulls Battle $145 Call Wall – Here’s How to Play the Ranging Drama

• PEP’s put/call open interest ratio (0.65) shows heavy bearish positioning at $140–$135, while calls pile up at $145–$160
• Block trade of 30,000 puts at $140 (expiring 10/17) hints at institutional hedging or accumulation
• RSI at 21 and Bollinger Bands suggest price could test $140.36 support before rebounding

The stock is caught in a tug-of-war between cautious bears and optimistic bulls. Here’s how to navigate the tightrope.The Options Chessboard: Puts at $140, Calls at $145

Let’s start with the most eye-catching numbers. The options market is loaded with 969 open puts at $140 (expiring this Friday) and a staggering 3,652 puts at $135 (next Friday). That’s not just bearish—it’s a wall of money betting PEP will fall below $140. Meanwhile, calls at $145 ($2,153 OI) and $160 ($13,914 OI) show big players are pricing in a potential rebound. The contrast is stark: bears are hedging at $140, while bulls are dreaming of $160.

But here’s the twist. The block trade of 30,000 puts at $140 (PEP20251017P140) is a red flag. That’s $10.2M in turnover—enough to move the needle. Why would someone sell 30k puts at $140? They’re either hedging a large stock position or quietly accumulating shares at a discount. Either way, it signals a psychological floor near $140.

News vs. Options: A Mixed Bag

The headlines are a rollercoaster. DZ Bank’s “Buy” rating and Yahoo Finance’s praise for PEP’s probiotics and breakfast cereal growth are bullish. But the Florida facility closures and 500 job cuts add short-term headwinds. The market’s reaction? It’s split. The options data leans bearish, but the news flow isn’t one-sided. Investors love the dividend yield (Motley Fool’s “double up” advice) but worry about operational efficiency. The key question: Will the job cuts hurt sentiment more than the dividend love offsets?

Actionable Trades: Puts at $140, Calls at $145

Let’s get specific. If you’re bearish, buy the $140 puts expiring next Friday (OI: 3,652). The block trade at $140 and RSI at 21 suggest a test of $140.36 support is likely. If PEP breaks below $141, those puts could gain 20%+ in a day. For bulls, the $145 calls (OI: 2,153) are a safer bet. If the stock holds above $142.70 (30D support), a rebound to $145 could trigger call buying.

For stock traders, consider entry near $140 if support holds. Set a stop-loss below $141.26 (intraday low). Target $143.00 (30D resistance) as a first exit. If you’re bearish, short near $142.50 with a tight stop at $143.00. The MACD histogram (-1.2) and RSI (21) suggest oversold conditions, but don’t ignore the bearish block trade.

Volatility on the Horizon

The next 72 hours will be critical. If PEP closes above $143.00, the $145 call wall could ignite a rally. But if it dips below $141, the $140 put contingency becomes a self-fulfilling prophecy. The block trade at $140 adds a layer of intrigue—will it push the stock lower, or will it act as a magnet for bargain hunters? Either way, the $140–$145 range is where the action lives. Stay nimble, and let the options data guide your entries. The market isn’t screaming “buy” or “sell”—it’s whispering “wait and see.” And that’s where the real opportunities hide.