PEP Options Signal Bullish Momentum: Key Strikes and Trade Setups at $155 Call Wall

• JPMorgan upgrades PEP to Overweight with $164 price target
• Block trade sells 30,000 puts at $140, hinting support
• Call open interest dominates at $155-$165 strikes, suggesting bullish bets

Here’s the thing: PEP’s options market is whispering upside potential louder than its technicals. With a 0.11% intraday gain and a bullish Kline pattern, the stock isn’t just ticking higher—it’s building momentum. Let’s break down why today’s data points to a breakout scenario.

Bullish Imbalance at $155 Call Wall

Options traders are stacking up calls like bricks at the $155 strike. This Friday’s $155 call (PEP20251219C155) has 5,392 open contracts—the highest on the chain. That’s not random. It’s a call wall, a price level where big money expects resistance to melt. Meanwhile, puts dominate at $140 (PEP20251219P140) with 3,408 open contracts, but the put/call ratio (0.67) tilts heavily toward bullish positioning.

Don’t ignore the block trade either: 30,000 puts sold at $140 (PEP20251017P140) for $10.2M. That’s a whale betting PEP won’t crater below $140. Combine that with Bollinger Bands showing the upper band at $150.85 and the 30D MA at $146.17, and you’ve got a textbook setup for a short-term rally. But watch the $155 strike—it’s either a launchpad or a speed bump.

Leadership Shifts and Analyst Hype Fuel Confidence

PEP’s executive reshuffle—Steven Williams moving to a global role, Ram Krishnan taking North America—signals a strategic pivot toward integrated food/beverage growth. JPMorgan’s $164 target isn’t just a number; it’s a vote of confidence in PEP’s innovation pipeline and productivity gains. Caldwell Trust’s $4.37M position also shows institutional buyers see long-term value.

But here’s the catch: The market isn’t pricing in immediate risks. The $140 put wall could hold, but if PEP stumbles below $143.96 (lower Bollinger band), that 200D support zone ($131.41–$131.97) becomes a pressure point. Retail traders might panic-sell puts at $135–$140, but big money’s block trade suggests they’re already hedged.

Actionable Trade Setups

For options: Buy the PEP20251219C155 call if PEP breaks above $151.60 (intraday high). Target $160–$165 by expiration. For a longer play, the PEP20251226C1525 (strike $152.5) offers cheaper gamma if the stock consolidates.

For stock: Enter near $150.80 with a stop at $143.96. First target: $155 (call wall), second: $160 (JPMorgan’s target). Use the $140–$145 range as a safety net.

Volatility on the Horizon

PEP isn’t just a slow-burn story. The options data and executive reshuffle point to a stock primed for a breakout. If the $155 call wall holds, this could be the spark for a $160+ rally. But don’t go all-in—this is a high-conviction trade with clear risk zones. Keep an eye on next week’s options expiration (Dec 26) for liquidity shifts. The market’s betting on Pepsi’s next chapter—and the odds look bullish.