PEP Options Signal Bullish Bias: Target $145 Calls as AI-Driven Optimism Outweighs Legal Risks

• PEP trades at $142.55, up 0.84% with volume surging to 4.25M shares.
• Options data shows 56% more call open interest than puts, with heavy positioning at $145 and $135 strikes.
• Analysts split on AI partnerships vs. price-fixing lawsuit risks—average price target remains $158.68.

Here’s the takeaway: PEP’s options market is leaning hard into a short-term rally, with call buyers dominating at key strike levels. While technicals hint at a potential bounce from oversold RSI, the real story is the clash between AI-driven optimism and legal headwinds. Let’s break it down.

Bullish OI at $145, Bearish Safeguards at $135

The options chain tells a clear story. For Friday expiration (Jan 16), the top call open interest sits at $145 (OI: 7,452) and $150 (OI: 13,042), while puts peak at $135 (OI: 19,764). This isn’t random—call buyers are betting on a breakout above the 30D support/resistance zone of $143.55–$143.83, while put buyers hedge against a drop below the lower Bollinger Band at $135.67. The 0.56 put/call ratio (for open interest) confirms skewed bullish sentiment. But don’t ignore the puts: a $135 strike breach could trigger panic, especially with the 200D support at $131.62 looming.

AI Hype vs. Legal Scrutiny: Which Drives the Stock?

PepsiCo’s AI partnerships with Siemens and NVIDIA are fueling long-term optimism. Analysts like Goldman Sachs see this as a margin-boosting catalyst, raising price targets to $167. But the recent price-fixing lawsuit with Walmart adds a layer of uncertainty. While no immediate financial hit is visible, reputational damage could weigh on investor sentiment. The good news? The stock’s 4.0% dividend yield and strategic AI bets still attract defensive investors. For now, the market seems to value growth potential over near-term risks—hence the call-heavy options activity.

Trade Ideas: Calls for Short-Term Gains, Cautious Longs

For options traders, the most compelling setup is buying PEP20260116C145 (Jan 16 $145 call) if PEP breaks above $143.55. With RSI at 29.5, a rebound is likely, and the $145 strike offers leverage if AI-driven optimism pushes the stock toward $145. Alternatively, a bull call spread using PEP20260116C145 and PEP20260116C150 caps risk while capitalizing on a moderate rally.

Stock buyers should consider entry near $141.04 (intraday low) with a stop-loss below $141.04. A breakout above $143.55 targets $145.68 (100D MA) and $145.68 (200D MA). For longer-term plays, the next Friday options (PEP20260123C143) offer cheaper premium if the stock consolidates.

Volatility on the Horizon

The coming weeks will test PEP’s resolve. A successful AI rollout could push the stock toward analyst price targets, but the lawsuit and PFNA’s permissible snack struggles remain risks. For now, the options market is pricing in a 10% upside to $156.80 (average target) by mid-2026. Traders should balance short-term call plays with a watchful eye on legal developments—because in this case, the story isn’t just about numbers, but about whether PepsiCo can turn AI promises into real efficiency gains.