PEP Options Signal Bullish Bias: Key Strikes and Strategies for Jan 23, 2026

• PEP’s price slipped 0.57% to $143.58, trading below its 30D moving average of $145.11
• Call open interest dominates at $150 and $149 strikes, with 2,988 and 1,046 contracts respectively
• Put/call ratio of 0.63 suggests strong near-term bullish sentiment despite recent volatility

Here’s the thing: PEP’s options market is whispering upside potential, even as the stock dips. The technicals and options data line up for a breakout scenario—if support holds. Let’s break it down.

Where Bulls and Bears Are Betting: The OTM Options Playbook

The options chain tells a clear story. For this Friday’s expiration, PEP20260123C150 and PEP20260123C149 calls lead in open interest, with 2,988 and 1,046 contracts outstanding. That’s not just noise—it’s a bet that PEP will punch above $149 before the close. Meanwhile, puts are clustered at PEP20260123P143 (542 OI) and PEP20260123P140 (449 OI), hinting at cautious downside protection.

But here’s the twist: The next Friday chain shows even more bullishness. PEP20260130C155 (917 OI) and PEP20260130C146 (831 OI) suggest positioning for a longer rally. No major block trades skew the data, so this looks like broad-based retail and institutional alignment. The risk? If PEP fails to hold above $143.15 (Bollinger Band middle), those bullish bets could unravel.

Dividends, Dips, and What the News Actually Means

PepsiCo’s 3.9% yield is a siren song for income seekers, but the payout ratio of 108% is a red flag. That dividend is a double-edged sword—loved by retirees, but a strain on earnings. The recent 1.59% drop on Jan 22nd? Think of it as a buying opportunity for long-term bulls. The stock’s 7-out-of-10-day rally streak shows resilience, but the 200D MA at $131.62 is a psychological floor to watch.

Here’s the rub: The market’s pricing in confidence that PepsiCo’s dividend machine keeps spinning, even as earnings pressure builds. If consumer sentiment shifts (say, soft drink demand slows), that 3.9% yield could vanish faster than a summer cold.

Your Playbook: Strikes, Stops, and Setup

For options traders: Go very specific. If you’re bullish, PEP20260130C150 (509 OI) offers a sweet spot. It’s just 4% out of the money but sits under the $155 call pileup, giving you room to breathe. For a conservative play, PEP20260130P142 (396 OI) could hedge against a pullback.

Stock buyers: Target $143.55 as an entry if PEP holds above its 200D MA. Set a stop-loss at $141.50 (below the 143.17 intraday low). The first resistance is $146 (Bollinger Band upper), with a stretch target at $149.50 if the $150 call buyers get their wish.

Volatility on the Horizon: What to Watch Next

The next 72 hours will test PEP’s resolve. A close above $146 would validate the bullish thesis, while a drop below $141.50 could trigger a cascade of stop-loss hits. The options market’s skewed toward optimism, but remember—Bollinger Bands and moving averages aren’t just lines; they’re psychological battlegrounds.

Bottom line: This isn’t a high-risk gamble. It’s a calculated setup. The dividend keeps the floor padded, the options flow points to a rally, and the technicals? They’re waiting for a spark. If you’re in, ride the $143.55 support like a surfer catching a wave. If you’re out, watch those $150 call buyers—when they move, the stock might follow.