PEP Options Signal Bullish Bias: Calls at $150 Dominate as Puts Fade—Here’s How to Play the Breakout

• PEP trades at $147.95, up 1.26% with volume surging to 1.65M shares.
• Call open interest crushes puts (282K vs. 185K), with $150 calls leading the charge.
• Block trades and product launches hint at a volatile finish ahead.

Here’s the bottom line: PEP shows upside potential today. The options market is pricing in a bullish bias, technicals hint at a breakout, and recent news—like a prebiotic cola launch—adds fuel to the fire. But don’t ignore the risks: short-term bearish momentum and currency pressures linger.

Bullish Sentiment in the Options Market: Calls at $150 Lead the Charge

The options chain tells a clear story. For this Friday’s expiration (2025-11-28), PEP20251128C150 calls dominate with 1,346 open contracts—nearly double the next strike. The $148 and $152.5 calls trail closely, showing heavy positioning for a $148–$152.5 range. Meanwhile, puts are a shadow of calls: the top put (PEP20251128P145) has just 1,242 open contracts. This 0.65 put/call ratio (for open interest) screams institutional bullishness.

But don’t sleep on the block trade: PEP20251017P140 saw 30,000 puts sold for $140, totaling $10.2M. That’s a whale betting PEP won’t crash below $140. Combine that with the call-heavy OI, and you’ve got a setup where PEP needs to break $148.45 (intraday high) to validate the bullish case.

News Flow: Restructuring and Innovation Fuel the Narrative

PepsiCo’s recent headlines are a mixed bag. The layoffs and facility consolidations (saving $500M annually) could weigh on short-term sentiment. But the prebiotic cola launch and Celsius partnership are clear bullish catalysts. The $1.42 dividend hike also signals cash flow strength—something analysts are highlighting as a key support for the stock.

Here’s the catch: currency and tariff risks loom. Zacks warns that 40% of PEP’s revenue is international, and exchange rate swings could dampen 2026 earnings. But for now, the market is focused on the near-term product momentum and restructuring savings. Retailers and investors are betting PEP can pivot without losing its core beverage magic.

Actionable Trades: Calls for the Breakout, Puts for the Safety Net

For options traders, the PEP20251128C148 call is a no-brainer. With PEP trading at $147.95, this $148 strike is just 0.05B below the current price. If PEP breaks $148.45 (intraday high) and holds above $146.18 (30D support), this call could run. For a longer play, PEP20251205C150 offers leverage if the stock closes above $150 by Dec 5.

On the stock side, consider entry near $146.18 (30D support) with a stop just below $145.95. The first target is $149.13 (Bollinger upper band), then $150 (key call-heavy zone). If PEP stumbles, a put spread (e.g., PEP20251205P145 and PEP20251205P142) could hedge downside risk while staying in play for a rebound.

Volatility on the Horizon: Navigating PEP’s Crossroads

The next 48 hours will be critical. If PEP closes above $148.45 this Friday, the $150 call-heavy zone becomes a magnet. But a close below $146.23 (intraday low) could trigger a test of $141.30 (lower Bollinger band). Either way, the options market is pricing in a directional move—just not yet clear which way. Stay nimble, and let the data guide your next play.