PEP Options Signal Bullish Bias at $150 as Puts Pile Up Below $145—Here’s How to Play the Rumble

• PEP trades at $146.00, up 0.34% with volume surging to 1.75M shares.
• Options data shows heavy call open interest at $150 and $148, while puts dominate below $145.
• Technical indicators hint at a short-term bearish pullback but long-term bullish setup.

Here’s the thing: PEP’s options market is screaming about a tug-of-war between bulls and bears. Call open interest is piling up at $150 (1,311 contracts) and $148 (1,055), while puts are stacking below $145. The stock is hovering near its 30-day moving average ($147.77), and the MACD histogram is inching into positive territory. This isn’t just noise—it’s a sign that traders are pricing in a potential breakout above $148, but they’re also hedging for a drop below $145. Let’s break it down.

Where the Money Is: Calls at $150, Puts at $141

The options chain tells a story. For this Friday’s expiration, the top call strikes are clustered between $146 and $152.50, with the $150 strike leading the pack. That’s not random—it’s a psychological level where bulls see a potential inflection point. Meanwhile, puts are concentrated below $145, with the $141 strike (912 contracts) and $145 strike (907) dominating.

Why does this matter? High open interest at $150 suggests a lot of traders are betting on a rally to test that level. If the stock breaks above $148, those calls could ignite. But the puts below $145 act as a safety net—if PEP cracks that level, the puts could trigger a cascade of selling pressure.

Don’t ignore the block trade either: A massive 30,000 puts were sold at the $140 strike (PEP20251017P140) in early November. That’s a whale-sized bet that PEP won’t collapse below $140. It’s a signal that big players are either hedging or accumulating at lower prices.

News That Could Tip the Scales

PepsiCo’s recent headlines are a mixed bag. On the positive side, the 5% dividend hike and regenerative agriculture partnership with Griffith Foods show management is prioritizing shareholder returns and sustainability. The prebiotic cola launch also targets a growing health-conscious demographic.

But the negatives are loud: Layoffs of 1,850 workers and concerns about flat EPS in 2025 due to currency and tariff pressures are casting a shadow. Analysts are split, with a “Hold” consensus from brokerages. The key question is whether PepsiCo’s cost-cutting and innovation can offset these headwinds.

Here’s the twist: The options market is already pricing in some of this. The heavy put activity below $145 suggests traders are bracing for a potential earnings miss or macroeconomic jitters. But the call buying at $150 implies confidence in PepsiCo’s ability to rebound—especially if the dividend and sustainability efforts pay off.

Trade Ideas: Calls at $148, Puts at $145, or a Bull Call Spread

If you’re bullish, consider buying the PEP20251128C148 (expiring this Friday) or PEP20251205C150 (next Friday). The $148 strike is just below the 30-day MA and has strong open interest. A breakout above $148 could push the stock toward $150, where the call options would gain momentum.

For a safer play, a bull call spread using the $148 and $152.50 strikes could limit risk while capitalizing on a rally. The $152.50 call (PEP20251205C152.5) has 1,181 contracts in open interest, making it a liquid choice.

On the bearish side, the PEP20251128P145 or PEP20251205P145 (341 contracts) could work if you expect a drop below $145. But keep an eye on the $141 put wall—breaking through $145 might trigger a rebound.

For stock traders, consider entering near $145.50 if the price holds above the lower Bollinger Band ($140.94). A target of $148 aligns with the 30-day MA and the call-heavy zone. If the stock dips below $145, a stop-loss at $143 (30D support) would protect against a deeper pullback.

Volatility on the Horizon

The next few days will be critical. If PEP breaks above $148, the call options at $150 could become a self-fulfilling prophecy. But a drop below $145 would test the puts at $141 and $145. Either way, the options market is setting up a high-stakes game of chicken.

The key takeaway? PEP is at a crossroads. The bulls are stacking calls at $150, the bears are bracing below $145, and the stock’s technicals suggest a potential breakout. Whether it’s a rebound or a breakdown, the next 72 hours could define the short-term trajectory. Stay nimble, and watch those strike levels like a hawk.