Lower prices contributed to the company's quarterly success
The shares of PepsiCo Inc (NASDAQ:PEP) are 3.1% higher to trade at $158.81, after the beverage and snack maker posted a first-quarter earnings and revenue beat. The company cited a cut in pricing on Lays, Doritos, and other items as the catalyst behind the growth.
PEP has been consolidating on the charts over the past few months, but remains 10.7% higher year to date. The overhead $160 region could prove to be overhead resistance, though the 120-day moving average remains just below for support.
Options traders have been quick to respond, with 22,000 calls and 7,279 puts across the tape so far, volume that is six times the average intraday rate. Most popular looks to be the April 162.50 call, with new positions being opened there, which are set to expire tomorrow after the close.
The Coca-Cola (KO) rival is ripe for upgrades, too, with 14 of the 22 covering brokerages sport a "hold" or worse recommendation. Should this bearish attention begin to unwind, it could trigger more tailwinds for the shares.
Finally, PepsiCo stock's Schaeffer's Volatility Scorecard (SVS) comes in at 72 out of 100. In other words, shares have consistently realized higher-than-expected volatility in the past 12 months.