Pepsi Stock Falls Flat After Quarterly Report

PEP call traders are coming out in droves

Deputy Editor
Oct 1, 2020 at 10:56 AM
facebook X logo linkedin


The shares of PepsiCo, Inc (NASDAQ:PEP) are down 0.4% at $138.01, after the food and beverage behemoth entered the earnings confessional this morning, reporting third-quarter earnings that beat Wall Street's estimates. Additionally, revenue came in just above forecasts, boosted in part thanks to a rise in snack purchases by consumers still in lockdown.  

On the charts, PEP is still enjoying gains from its Sept. 28 bull gap, which sent the stock back above the $134 level -- a level that falls in-line with the stock’s year-to-date breakeven mark Meanwhile, PEP boasts a 12.8% lead over the last six months, while the stock’s 80-day moving average has once more solidified itself as a layer of support. That trendline is also in a prime position to capture any pullbacks the equity may see after this post-earnings blunder.

Today's options pits are flashing some serious bullish activity. In fact, in just the first hour of trading, over 10,000 calls have exchanged hands -- seven times the intraday average and volume pacing in the top percentile of the stock's annual range. Most popular is the weekly Ocotober 142-strike call, followed by the October 140 call. 

And with earnings in the rearview mirror, options seems like a decent way to go at the moment. PEP’s Schaeffer's Volatility Index (SVI) of 24% stands in the 13th percentile of its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. What's more, the equity's Schaeffer's Volatility Scorecard (SVS) ranks at 16 out of a possible 100, implying that the stock has tended to disappoint on volatility expectations in the past year.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI