PepsiCo's Options: A Look at What the Big Money is Thinking

Deep-pocketed investors have adopted a bearish approach towards PepsiCo 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 11 extraordinary options activities for PepsiCo. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 27% leaning bullish and 63% bearish. Among these notable options, 2 are puts, totaling $195,680, and 9 are calls, amounting to $577,638.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $160.0 to $180.0 for PepsiCo over the last 3 months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for PepsiCo's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of PepsiCo's whale trades within a strike price range from $160.0 to $180.0 in the last 30 days.

PepsiCo Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

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.

In light of the recent options history for PepsiCo, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of PepsiCo

• Currently trading with a volume of 3,927,327, the PEP's price is up by 2.22%, now at $178.84.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 67 days.

What The Experts Say On PepsiCo

5 market experts have recently issued ratings for this stock, with a consensus target price of $183.2.

• An analyst from Morgan Stanley has decided to maintain their Overweight rating on PepsiCo, which currently sits at a price target of $185.
• Maintaining their stance, an analyst from Wells Fargo continues to hold a Equal-Weight rating for PepsiCo, targeting a price of $170.
• Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for PepsiCo, targeting a price of $200.
• An analyst from JP Morgan persists with their Neutral rating on PepsiCo, maintaining a target price of $182.
• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for PepsiCo, targeting a price of $179.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for PepsiCo, Benzinga Pro gives you real-time options trades alerts.