PEP Options Signal Bullish Momentum: Key Strikes and Trade Setups for Dec 19–26

• Citi raised PEP’s price target to $170 from $165, reinforcing bullish sentiment.
• Open interest for OTM calls (e.g., $155 strike) is 66% higher than OTM puts ($140 strike) this Friday.
• A $30,000-block put sale at the $140 strike hints at institutional confidence in near-term support.
• PEP’s RSI (56.3) and bullish Kline pattern suggest a potential rebound from key moving averages.

Here’s what the options market and technicals are telling us: PEP is perched at a crossroads. The stock’s slight dip today (-0.21%) masks a broader story of call-heavy positioning and a price target bump to $170. If you’re staring at the $150 level, you’re not alone—200K shares traded hands, but the real action is in options. The data leans strongly bullish, but let’s unpack why and where to focus.Bullish Calls Dominate, Block Trades Signal Conviction

Let’s start with the options chain. This Friday’s expiring calls show heavy open interest at the $155 (OI: 5,058) and $160 (OI: 3,113) strikes, while puts max out at $140 (OI: 3,373). That’s a 1.5:1 call/put imbalance for these key strikes. Think of it like a crowd gathering at an exit ramp—most are betting on an upside breakout.

But here’s the twist: A massive block trade sold 30,000 puts at the $140 strike (PEP20251017P140) in early December. That’s not noise—it’s a whale hedging against a deep pullback. Combine that with the 200D support at $131.40 and you’ve got a floor scenario. The risk? Regulatory scrutiny could shake confidence, but the options data assumes a smooth ride.

News Bolsters the Bull Case—For Now

Citi’s $170 target isn’t just a number. It’s a psychological nudge for traders to lock in calls against the $155–$160 strikes. The “Buy Candidate” upgrade from analysts also lines up with PEP’s technicals: Its 30D MA ($146.81) and 200D MA ($142.17) are both acting as shields.

But don’t ignore the bearish undertones. Regulatory questions hang over pricing practices, which could delay the $170 dream. Still, the market’s pricing in optimism—PEP’s RSI is creeping toward overbought territory (56.3), but it’s not screaming “sell” yet.

Trade Setups: Calls, Breakouts, and Precision Entries

For options players, the PEP20251219C155 (this Friday’s $155 call) is a high-conviction play. If PEP cracks above its intraday high of $150.37, this strike could see a pop. For longer-term positioning, the PEP20251226C155 (next Friday) offers more time for the $170 target to materialize.

Stock buyers, meanwhile, should eye $144.85 (30D support). A close above $149.38 (today’s low) would validate the bullish case. Target zones? The $155 call strike and Citi’s $170 target. A stop-loss below $144.71 (Bollinger Band lower bound) would protect against a surprise selloff.

Volatility on the Horizon

PEP isn’t just a numbers game—it’s a story of momentum versus caution. The options market is pricing in a $155+ breakout, but regulatory risks and inventory concerns could create turbulence. If you’re in calls, keep an eye on the $140 put strike (OI: 3,373) as a liquidity magnet in a downturn. For now, the data says: Buy the dip, but watch the exits.