PEP Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Q4 2025

• PEP’s price dipped 1.4% to $145.05, but options data shows heavy call open interest at $150–$165 strikes.
• A $140 put block trade (30,000 contracts) hints at institutional bets on downside protection.
• Zacks and Universal Beteiligungs are bullish, but plant closures and tariffs pose near-term risks.
• RSI at 48.7 and Bollinger Bands suggest $139.74 as critical support, with $152.87 as resistance.

Here’s the takeaway: PEP’s options market is pricing in a bullish bias, with heavy call buying and a 0.636 put/call ratio (calls dominate). But the stock’s 1.4% drop today and mixed news flow mean traders need to balance optimism with caution. Let’s break it down.The Options Playbook: Calls, Puts, and Whale Moves

PEP’s options chain is a chessboard of bets. For Friday’s expiry, calls at $150–$165 have the most open interest, with 13,855 contracts at $160 alone. That’s not just noise—it’s a signal. Traders are pricing in a potential rebound to $150+ by expiration. Meanwhile, puts at $135–$145 have 3,931 contracts, suggesting a floor near $140. The 0.636 put/call ratio (calls > puts) reinforces the bullish tilt.

But don’t ignore the block trade: 30,000 puts at $140 expiring in October 2025. That’s a whale-sized bet on downside protection. Think of it as a safety net—if PEP breaks below $140, this trade could spark a short-term rally as sellers cover their positions. The risk? If tariffs or margin pressures accelerate, the $135–$140 range could face selling pressure.

News That Shapes the Narrative

PEP’s story isn’t just numbers—it’s about real-world forces. The "Naked" Doritos and Cheetos launch is a win for brand loyalty, but plant closures and layoffs are a double-edged sword. They cut costs in the long run but hurt short-term sentiment. Tariff headwinds are a wildcard, squeezing margins even as Zacks and Universal Beteiligungs bet on 2026 growth.

Here’s the tension: Institutional investors are buying (Universal’s $187M stake) while analysts question the dividend’s sustainability. This duality means PEP’s stock could swing between defensive (safe-haven appeal) and cyclical (growth bets) narratives. The options market is leaning toward the latter, but don’t discount the risk of a pullback if earnings miss or tariffs spike.

Actionable Trade Ideas: Calls, Puts, and Price Levels

For options traders, the most compelling plays are:

• Buy PEP241018C150 (Friday expiry): With 5,613 contracts in open interest, this call is a low-cost bet on a rebound to $150. Entry: $145.05. Target: $152.87 (Bollinger Upper Band). Stop-loss: $143.03 (30D support).
• Buy PEP241018P145 (Friday expiry): 3,825 puts here offer downside protection. If PEP breaks $144, this strike could see a pop. Entry: $145.05. Target: $139.74 (Bollinger Lower Band). Stop-loss: $147.08 (intraday high).

For stock traders, consider:

• Entry near $143.03 (30D support): If PEP holds here, it could rally to $147.96 (30D MA). Use the $144.93 intraday low as a stop-loss.
• Short-term scalp near $147.08: A break above this level could push to $152.87, but watch for fading momentum if RSI crosses 50.

Volatility on the Horizon: Balancing Bullish Bets and Risks

PEP’s path isn’t a straight line. The $140 block trade and Zacks’ 2026 optimism suggest a long-term bull case, but near-term risks like margin pressures and plant closures could trigger dips. The key is timing: If PEP holds above $143, the bullish setup plays out. Below that, the puts at $135–$145 could become a battleground.

Final Take: This is a stock caught between innovation and execution challenges. The options market is pricing in a rebound, but don’t ignore the headwinds. For traders, the sweet spot is a $145–$150 range, with clear entry/exit levels. For investors, patience is key—PEP’s long-term story is intact, but the next few quarters will test its resilience.