PEP Options Signal Bullish Bias: Key Strikes and Trade Setups for Dec 19, 2025

• PEP trades at $148.71, down 0.44% from its 52-week high of $149.37
• Call open interest dominates at $150–$155 strikes, with a put/call ratio of 0.68
• Q3 earnings surge, new zero-sugar Pepsi Max, and a bullish technical setup ahead

Here’s the thing: PEP’s options market is whispering upside potential louder than its technicals. Calls at $150 and $155 are packed with open interest, while a block trade of 30,000 puts at $140 hints at institutional confidence in support. Let’s break down what this means for your strategy.

Bullish Imbalance in OTM Options and Whale Moves

The options chain tells a clear story: traders are betting on a rally. For this Friday’s expiration, PEP20251219C150 and PEP20251219C155 have 2,940 and 3,108 open contracts respectively—nearly double the nearest put strikes. That’s not just noise; it’s a crowd hedging a breakout above $149.89 (intraday high).

But don’t ignore the puts. PEP20251219P140 (3,365 OI) and PEP20251219P135 (2,869 OI) suggest a floor around $140–$135 if the rally stumbles. The block trade of 30,000 puts at $140 (expiring Oct 17) adds another layer: big players are betting PEP won’t crater below that level anytime soon.

News Flow: Fuel for the Fire or a Speed Bump?

PepsiCo’s recent news is a mixed bag. The Q3 earnings beat and new zero-sugar Pepsi Max launch are tailwinds—especially with Bollinger Bands showing the stock is trading near the upper band ($152.07). But the European regulatory scrutiny and 500 job cuts? Those could create short-term headwinds.

Here’s the kicker: the market already priced in most of the positives (like the dividend hike and AI-driven marketing partnership). The bearish headlines haven’t dented the stock much yet. If the Q4 earnings in January exceed expectations, the bulls could shrug off the negatives.

Actionable Trade Ideas for Today

1. Options Play: Buy PEP20251226C150 (next Friday’s $150 call) at $1.25–$1.30. Why? The 30-day support at $144.85 is holding, and the RSI (51.9) isn’t overbought. If PEP breaks above $149.89, this call could catch a 5–7% move before expiration.

1. Bull Call Spread: Sell PEP20251226C155 (OI: 554) to cap risk. Net premium depends on timing, but this structure limits downside while keeping upside open if the stock gaps higher.

1. Stock Entry: Consider buying PEP near $144.85 (30-day support) with a stop just below $143.89 (lower Bollinger Band). Target $152.07 if the 200-day MA ($142.15) continues to act as a floor.

1. Downside Hedge: Buy PEP20251226P145 (OI: 249) at $1.00–$1.10. This gives protection if the European regulatory issues escalate, but keep position size small—this is insurance, not a bet.

Volatility on the Horizon

The next two weeks are critical. PEP’s 100-day MA ($146.02) is just below current price, and the MACD histogram (0.27) is still positive. If the stock holds above $144.85, the bulls could push toward $155. But watch for a breakdown below $143.89—it could trigger a test of the 200-day MA.

Bottom line: PEP is in a sweet spot. The options market is pricing in a rally, technicals are aligned with long-term bullish trends, and the news flow—while not perfect—leans positive. Trade with the crowd, but keep an eye on that $140 support level. It’s either a fortress… or a warning sign.