PEP Traders Watch Out: Call Options Climb at $160–$162.5 as Pepsico Outperforms Earnings and Eyes a $2.4B Acquisition

• Pepsico (PEP) opens bearish at $154.45, down 0.54% from yesterday's close.
• Options market shows heavy call open interest at $160 and $162.5, suggesting a price target above $160.
• RSI at 39.36 hints at a potential rebound after a short-term dip.
• Bullish technicals and aggressive call positioning set up a key trade window this week.

The stock may be down today, but the options market is quietly bullish. PEP has seen a surge in call open interest at the $160 and $162.5 strikes, especially in the this Friday (April 3) and next Friday (April 10) expirations. This doesn't look like idle speculation—it looks like traders are positioning for a move above $160 in the next 10–14 days.

What Call and Put Activity Reveal About PEP’s Sentiment

Let’s break down the options data. For the April 3 expirations, the $162.5 call has 2,691 contracts in open interest—by far the most among out-of-the-money calls. Right below it, the $160 call has 2,258 contracts. That’s not random. It suggests a cluster of money is betting on a rebound above $160.

On the put side, the $152.5 strike is the most active with 378 contracts in open interest, but that’s still a small number compared to the call interest. The call/put open interest ratio is 0.71—favoring calls. In options terms, that’s a clear lean toward bullish positioning.

The next Friday (April 10) options also support the thesis. The $162.5 call has 235 contracts, and the $160 call has 327. These aren’t just small traders—this is institutional money with a price target in mind.

And there’s no big block trade or whale move to muddy the signal. That’s a good sign. The money is flowing naturally into these strikes, not from a single big player trying to manipulate the market.

How Pepsico’s News Lines Up with Options Action

The news flow is on the right side of this trade. PEP just reported a strong Q1, outperforming revenue and profit expectations. Earnings estimates for the year are now up. The company raised its dividend, launched a plant-based beverage line, and is acquiring a $2.4B health and wellness brand. That’s not just a headline—it’s a strategic move that could unlock new growth.

With all that momentum, it’s no surprise the options market is pricing in a rebound. PEP’s recent stock performance has also been impressive, outpacing the S&P 500 by nearly 5% in the first quarter. That kind of performance tends to attract attention—and options money.

Trades to Consider: Stock and Options for April 1–10

For stock traders, consider the following:

• If PEP holds above $153.26 (intraday low) and shows signs of breaking the $156.25 middle Bollinger Band, that’s a green light for a long entry.
• A break above $157.50 could trigger a test of the $159.85 30-day moving average. If it holds, the next target is $162.50, where heavy call interest is already in place.
• Stop-loss could be placed just below $153.25, the intraday low.

For options traders, these setups look compelling:

• Consider buying PEP20260403C160 or PEP20260403C162.5 (April 3 expirations). These are in the high-traffic zone and could benefit from a near-term rebound.
• A calendar spread between PEP20260403C160 and PEP20260410C162.5 could also work well for a more conservative play with time on your side.
• Watch the $152.5 put (PEP20260403P152.5) as a potential short-term hedge if the stock pulls back further.

Volatility on the Horizon

The next few weeks are critical for PEP. The company will host an investor day in May, and the Q2 earnings are due on April 22. With a bullish options setup, strong earnings, and a new acquisition in the works, PEP is on track to test the $162.50–$165 range in the next two weeks.

If the stock breaks above that level and holds, we could be looking at a new short-term high. And with call open interest concentrated just below that zone, it’s a setup where the crowd and the charts are aligned.

Traders who act now can ride the momentum before the market catches up to the numbers.