PEP's Options Signal Bullish Bias: Key Strikes and Block Trades Point to Strategic Entry Zones

• PEP trades at $142.67, down 0.65% from its 52-week high of $157.86
• Options data shows 2.8x more call open interest than put open interest at key strikes
• Massive $10.2M block trade in PEP20251017P140 suggests institutional positioning

Here's what the numbers tell us: PEP is sitting at a technical crossroads. While the RSI (28.02) screams oversold and Bollinger Bands show extreme compression, options traders are betting heavily on a rebound. The real intrigue? A $10.2 million block trade in October 2025 puts at $140 suggests big players are hedging—or accumulating—while call buyers are stacking up at $149-$155 strikes. Let's unpack why this matters for your portfolio.

The Options Imbalance: A Bullish Playbook

Looking at Friday's options chain, the call/put open interest ratio is 2.8:1 at key strikes. Calls at $149 (OI: 1,909) and $155 (OI: 1,867) dominate, while puts max out at $135 (OI: 534). This isn't just noise—it's a crowd-sourced bet that PEP will test its 30-day moving average ($146.45) before settling into a longer-term range.

But don't ignore the bearish signals. That $10.2 million block trade in PEP20251017P140—selling puts expiring October 17, 2025—is huge. Think of it like a hedge fund buying insurance against a drop below $140. The twist? They're paying sellers to take that risk, which could create a support level if the stock approaches $140.

The News Void: Technicals Take Center Stage

With no material headlines to anchor sentiment, traders are relying purely on technicals. That's both a blessing and a trap. On one hand, oversold RSI and compressed Bollinger Bands suggest a bounce is overdue. On the other, the 200-day moving average ($142.54) is acting as a tight corridor—break below $140.28 (lower BB) and the bear case gets legs.

Here's the catch: without fundamental catalysts, this trade hinges on options expiration dynamics. Friday's $149 calls (strike price $149) could create a self-fulfilling prophecy if enough buyers show up to push the stock above $149. But if PEP fails to hold $142.47 (intraday low), those bullish bets turn into losses.

Actionable Strategies for PEP Traders

For options players, the most compelling setup is a bull call spread using Friday's $149 and $155 strikes. Buy the $149 call (OI: 1,909) and sell the $155 call (OI: 1,867) to reduce cost. Why? The high open interest at $149 suggests liquidity, while the $155 strike caps risk if the move stalls. For next Friday's chain, the $150 call (OI: 541) offers a cleaner play with less time decay pressure.

Stock traders should consider buying dips near $142.47—the intraday low. Set a tight stop below $140.28 (lower Bollinger Band). If PEP breaks above $144.93 (intraday high), target $149.07 (middle BB) as a short-term ceiling. For downside protection, the $140 put (OI: 1,160 in next Friday's chain) offers cheap insurance against a breakdown below $140.

Volatility on the Horizon

The next 72 hours will be critical. If PEP closes above $144.7 (today's open), the 30-day moving average at $146.45 becomes a gravitational pull. But watch that $140 level—the block trade and next Friday's put open interest (OI: 1,160 at $140) could create a floor.

Longer term, the 200-day moving average ($142.54) is a psychological battleground. Break below $131.43 (200D support) and the bear case dominates. Above $151.33 (30D resistance)? PEP could retest its 52-week high.

This isn't a binary bet. It's a chess game between technical triggers and options expiration dynamics. The key? Stay nimble. If PEP holds $142.47, the bulls have a path to $149. If it cracks $140, the puts become a lifeline. Either way, the options market has already priced in the extremes—now it's about execution.