Smart Money Is Betting Big In PEP Options
Deep-pocketed investors have adopted a bearish approach towards PepsiCo (NASDAQ:PEP), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in PEP usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 9 extraordinary options activities for PepsiCo. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 22% leaning bullish and 66% bearish. Among these notable options, 5 are puts, totaling $182,828, and 4 are calls, amounting to $150,418.
Predicted Price Range
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $160.0 and $200.0 for PepsiCo, spanning the last three months.
Volume & Open Interest Development
In today's trading context, the average open interest for options of PepsiCo stands at 1804.86, with a total volume reaching 1,706.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in PepsiCo, situated within the strike price corridor from $160.0 to $200.0, throughout the last 30 days.
PepsiCo Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| PEP | CALL | SWEEP | BEARISH | 07/12/24 | $2.14 | $2.13 | $2.13 | $162.50 | $64.9K | 980 | 142 |
| PEP | PUT | SWEEP | BEARISH | 07/12/24 | $1.4 | $1.35 | $1.4 | $160.00 | $51.8K | 2.4K | 607 |
| PEP | PUT | SWEEP | BEARISH | 07/12/24 | $1.4 | $1.34 | $1.39 | $160.00 | $45.7K | 2.4K | 106 |
| PEP | CALL | SWEEP | BEARISH | 12/20/24 | $4.8 | $4.7 | $4.75 | $170.00 | $33.1K | 632 | 0 |
| PEP | PUT | TRADE | BEARISH | 07/19/24 | $1.65 | $1.6 | $1.64 | $160.00 | $31.6K | 6.9K | 359 |
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 drink 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 US and overseas. International markets make up 40% of total sales and one third of operating profits.
Following our analysis of the options activities associated with PepsiCo, we pivot to a closer look at the company's own performance.
PepsiCo's Current Market Status
- With a volume of 3,152,577, the price of PEP is down -0.23% at $161.75.
- RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
- Next earnings are expected to be released in 2 days.
Expert Opinions on PepsiCo
In the last month, 5 experts released ratings on this stock with an average target price of $187.6.
- Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for PepsiCo, targeting a price of $190.
- An analyst from Exane BNP Paribas has revised its rating downward to Neutral, adjusting the price target to $174.
- An analyst from Jefferies persists with their Buy rating on PepsiCo, maintaining a target price of $200.
- An analyst from TD Cowen has decided to maintain their Buy rating on PepsiCo, which currently sits at a price target of $190.
- Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for PepsiCo, targeting a price of $184.
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.