PEP Options Signal a Key $175 Call Battle as Traders Hedge Below $152.50: What to Watch This Week

• PEP is currently trading at $157.24, down 0.31% from its open, with the 30-day moving average at $164.44 acting as a near-term ceiling.

• The options market is showing strong bearish positioning, with $152.50 put options (expiring March 20) leading the pack in open interest at 6,306.

• Meanwhile, bullish money is piling into the $175 strike call options, especially with 9,759 open interest for this week's expiration.

• The RSI is at 23.6, signaling a potential bounce near the Bollinger Band support at $156.04.

PEP is sitting in a tight crosshairs between bearish options positioning and a long-term bullish trend. The market is clearly bracing for a directional move—either up to the $175 call sweet spot or down toward the $152.50 put sweet spot.

Where the Money Is: Call vs Put Imbalance and OTM Activity

Right now, the call open interest for the $175 strike (PEP20260320C175) is nearly 3x the next strike at $165. That’s not accidental—it’s a signal.

Look at the put side. The $152.50 strike (PEP20260320P15250) is dominating with 6,306 contracts in open interest. That’s a major psychological level for bears to target before the Friday expiration.

The imbalance is clear: put/call open interest ratio is 0.7388, meaning more people are betting on a rebound than a drop. But the bearish positioning is still strong enough to keep the stock from bouncing freely.

No Whale Moves—But the Market Is Watching

There are no major block trades reported today, which is odd for a stock with PEP's volume. But that doesn’t mean there’s no strategy at play. It just means the big players are letting the options market lead the way.

No News, Just Numbers: What’s Driving the Sentiment?

There’s no recent news on PEP in the headlines. The lack of headlines might explain the muted stock reaction. But it also means the options market is operating on a pure technical and sentiment-based narrative.

That’s both good and bad. It means there’s less noise to sift through, but it also means the stock could be prone to overreaction if a minor data point or earnings update comes in later this week.

What to Do: Stock and Options Setups for This Week

For options traders, the most interesting plays are at the $175 call and $152.50 put levels:

• Bullish Play: Buy the PEP20260320C175 for Friday or go further out to PEP20260327C175 for next week. If PEP breaks above $160 and holds, this call could see a big move. Entry: $168. Target: $175.

• Bearish Play: Buy the PEP20260320P15250 for Friday or the PEP20260327P15250 for next week. If PEP drops below $157, this could pay off. Entry: $156.50. Target: $152.50.

• Stock Play: Buy the stock if it breaks above $160 and holds above the 30-day MA at $164.44. Stop below $156.50 if it fails to stabilize. A move from $160 to $170 would be a strong short-term win.

Bullish Trends Ahead: Watching the March 20 Expirations

If PEP can break above $160 and hold, it could trigger a rally toward the $175 call-heavy zone. That would mean the bears at $152.50 are wrong—and the bulls at $175 have a lot of upside.

But if the stock closes below $156.50 by Friday, the bearish sentiment will take over. That’s where the put-heavy positioning at $152.50 becomes a real risk.

Either way, this week’s expirations will tell us a lot. And for traders who spot the call/put imbalance early, there’s a chance to be on the right side of the move—before the market decides for real.