PEP Options Signal Bullish Bias at $147–$148, But $141 Support Could Be Key — Here’s How to Play It

• PEP trades at $142.58, down 0.66% amid short-term bearish momentum but long-term range-bound structure.
• Call open interest spikes at $147–$148 strikes for Friday expiration, while a $140 put block trade hints at potential support.
• Analysts debate dividend sustainability, but Q3 earnings beats and snack-soda synergy remain bullish catalysts.

Here’s the thing: PEP’s options market is sending a mixed but actionable message. On one hand, the RSI at 23.5 and MACD divergence scream for a rebound. On the other, heavy call open interest at $147–$148 suggests a psychological ceiling. But if you dig into the block trade selling $140 puts and the Bollinger Band lower bound at $141.47, it’s clear the market is bracing for a test of key support. Upside potential exists if $141 holds, but downside risks linger if the 200D MA at $141.87 breaks.

The Pressure Points in PEP’s Options Chain

Let’s start with the numbers: 1,454 open calls at $147 and 1,369 at $148 for Friday’s expiration. That’s not just noise—it’s a crowd betting PEP won’t break above $146 today. Meanwhile, the top put OI at $141 ($903 open) and a recent block trade selling 30,000 puts at $140 (expiring Oct 17) suggest institutional players are hedging a drop to $140–$141. Think of it like a seesaw: heavy call OI at $147 acts as a ceiling, while the $141 put OI and block trade form a floor. The danger? If PEP closes below $142.42 (intraday low), the bearish momentum could accelerate.

News That Could Tilt the Scales

PEP’s recent headlines are a mixed bag. The 4.0% dividend yield and $3.5B bond offering signal financial strength, but the 108.17% payout ratio raises red flags for some analysts. The cost-cutting moves (200 snacks axed, 3 plants closed) aim to boost margins, yet the Wall Street Zen downgrade to “hold” reflects caution. Here’s the kicker: institutional investors are still buying. Virginia Retirement and Sterling Investment added shares last week, while DZ Bank’s $167 price target gives bulls a target. But if the 200D MA breaks, that $131.61–$132.13 support zone could trigger panic selling.

Trade Ideas: Calls at $145, Puts at $141, or a Core Position

For options traders, the most attractive setup is buying PEP20260109C145 (next Friday’s $145 call). Why? The lower Bollinger Band sits at $141.47, and if PEP holds above that, the $145 call could catch a rebound toward the 30D MA at $147.13. Alternatively, a PEP20260109P141 put could hedge against a breakdown below $141.47, especially with 572 open puts at that strike. For stock players, consider entry near $141.47 if support holds, with a target at $146.95 (middle Bollinger Band) and a stop below $141.87 (200D MA).

Volatility on the Horizon

The next 72 hours will be critical. If PEP closes above $143.67 (30D support), the $147–$148 call-heavy zone could attract more buyers. But a close below $141.47 would validate the bear case, forcing a reevaluation of the $132.13 long-term floor. Either way, the options market has already priced in a high-probability range trade—the real question is whether fundamentals will push PEP out of its rut or keep it trapped between $141 and $147.