What the Options Market Tells Us About PepsiCo

Author: Benzinga Insights | February 20, 2024 12:30pm

Investors with a lot of money to spend have taken a bullish stance on PepsiCo (NASDAQ:PEP).

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with PEP, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 10 options trades for PepsiCo.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $70,343, and 9, calls, for a total amount of $487,144.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $170.0 and $175.0 for PepsiCo, spanning the last three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for PepsiCo options trades today is 3380.83 with a total volume of 13,715.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for PepsiCo's big money trades within a strike price range of $170.0 to $175.0 over the last 30 days.

PepsiCo 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Strike Price	Total Trade Price	Open Interest	Volume
PEP	CALL	SWEEP	BULLISH	03/22/24	$170.00	$84.2K	1.5K	415
PEP	CALL	TRADE	BULLISH	03/15/24	$170.00	$82.8K	4.8K	1.3K
PEP	PUT	SWEEP	BEARISH	01/17/25	$170.00	$70.3K	1.7K	222
PEP	CALL	TRADE	BULLISH	03/22/24	$170.00	$63.0K	1.5K	1.0K
PEP	CALL	SWEEP	NEUTRAL	01/17/25	$175.00	$61.6K	2.1K	344

About PepsiCo

PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy offerings. Convenience foods account for approximately 55% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the United States and overseas. International markets make up 40% of total sales and one third of operating profits.

After a thorough review of the options trading surrounding PepsiCo, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of PepsiCo

• Currently trading with a volume of 2,387,732, the PEP's price is up by 0.85%, now at $167.74.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 63 days.

What The Experts Say On PepsiCo

In the last month, 4 experts released ratings on this stock with an average target price of $188.25.

• Showing optimism, an analyst from Citigroup upgrades its rating to Buy with a revised price target of $195.
• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for PepsiCo, targeting a price of $183.
• In a cautious move, an analyst from RBC Capital downgraded its rating to Sector Perform, setting a price target of $180.
• An analyst from Wedbush downgraded its action to Outperform with a price target of $195.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for PepsiCo with Benzinga Pro for real-time alerts.

Posted In: PEP