PEP Options Signal Bullish Momentum: Key Strikes and Strategic Entry Points for Dec 5, 2025

• Options OI shows heavy call bias at $150–$152.50 strikes, with put activity clustering below $141
• Price sits near 200D MA ($142.39) but faces 30D MA resistance at $146.67
• Activist investor Elliott’s $4B push and F1 partnership hint at strategic repositioning

Here’s the takeaway: PEP’s options market is pricing in a high-probability bullish bias, but technicals and news suggest a tight battle between short-term profit-taking and long-term optimism. The stock shows upside potential if it breaks above $146.25 (Bollinger Middle Band), but downside risks linger near $141.86 (Lower Band).

What the Options Chain Reveals About Market Sentiment

The options market isn’t whispering—it’s shouting. For Friday’s expirations, 1513 open calls at $152.50 and 919 puts at $141 dominate the chain. That’s not random noise. It’s a bet: bulls are stacking up for a push toward $150+, while bears are hedging for a drop to $140s. The put/call ratio of 0.67 (calls > puts) confirms this skew. But here’s the twist: a massive block trade of 30,000 puts at $140 (PEP20251017P140) hit in late October suggests big players are either accumulating puts at a discount or hedging a large position. Either way, it adds intrigue to the $140 level as a potential catalyst.

News Flow: Strategic Shifts vs. Operational Headwinds

Elliott’s $4B push to refranchise bottling units and cut underperforming food assets is the big story. If executed, this could unlock value—think of it as pruning a tree to grow stronger branches. The F1 partnership with Mercedes-AMG? A flashy move to boost brand energy, but its impact will take time. Meanwhile, job cuts in Ireland and Mirabella’s 74% stake reduction add near-term jitters. The market’s mixed reaction? PEP’s 3.9% yield and $1.4225 dividend offer a safety net, but volumes in North America are still soft. This means bulls need patience—the news supports a long-term case but could pressure the stock if short-term execution falters.

Actionable Trade Ideas: Calls, Puts, and Price Levels

For options traders, the most compelling plays are:

• Bullish: Buy PEP20251212C150 (next Friday’s $150 call) if PEP closes above $146.25 today. The strike has 1220 OI and aligns with the 30D MA breakout target.
• Bearish: Buy PEP20251212P144 (next Friday’s $144 put) if PEP dips below $144.58 (intraday low). The 144 strike has 322 OI and sits near the 200D MA support.

For stock traders, consider:

• Entry near $144.50 if PEP holds above $141.86 (Lower Bollinger Band). Target $148–$150 if the 30D MA breaks.
• Exit below $143 to protect gains, as the 200D MA at $142.39 could act as a floor.

Volatility on the Horizon

The next 72 hours will test PEP’s resolve. A close above $146.67 (30D MA) could trigger a rally toward $150, fueled by Elliott’s push and the F1 buzz. But a breakdown below $143 would invite short-term pain, especially with puts at $140 primed to accelerate selling. The key? Watch the $146.00–$146.22 resistance zone—if bulls reclaim it, the long-term bull case reasserts. If not, the stock could face a bumpy ride into year-end. Stay nimble, and let the data guide your next move.