PepsiCo Stock Brushes Off Bear Note Before Earnings

Option bulls are targeting PEP as it moves higher

Deputy Editor
Jul 10, 2023 at 11:36 AM
facebook X logo linkedin


PepsiCo Inc (NASDAQ:PEPSI) is eyeing its sixth day of gains in the last seven, up 1.3% at $185.50 at last glance, despite a price-target cut from Barclays to $198 from $206. The bear note comes ahead of the company's second-quarter earnings report, due out before the open on Thursday, July 13. 

Call traders are chiming in ahead of the report, with 4,345 calls exchanged so far, volume that's double what's typically seen at this point. The July 190 call is the most active contract, followed by the weekly 7/14 185-strike call. 

Pepsi stock finished the day positive after its last three earnings reports, and closed higher in five of its last eight next-day sessions. In the past two years, the stock averaged a post-earnings move of 1.5%, regardless of direction, which is lower than the 2.8% move the options pits are pricing in this time around. 

It's worth noting that PepsiCo stock's 14-day relative strength index (RSI) of 33.6 sits on the cusp of "oversold" territory, meaning it could be due for a short-term bounce. Year-to-date, the equity is up 2.6%. 

 

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