PepsiCo Stock Nabs Record High on Energy Drink Investment

Call volume is running at double the intraday average

Digital Content Manager
Aug 1, 2022 at 2:37 PM
facebook twitter linkedin

PepsiCo, Inc. (NASDAQ:PEP) is in the spotlight today, after agreeing to invest $550 million in Celsius Holdings (CELH) for an 8.5% stake. The deal also has also enabled PepsiCo to take over the company's U.S. energy drink distribution, and to nominate a director to serve Celcius' board. At last check, PEP is up 1% to trade at $176.78.

Options bulls are taking notice, with 21,000 calls across the tape so far -- double the intraday average -- as opposed to just 4,047 puts. Most popular by far is the 8/5 180-strike call, where positions are currently being opened, followed distantly by the September 180 call.

The equity has fared extremely well since its last earnings report, which culminated in a beat-and-raise. In fact, the shares earlier today hit a fresh all-time high of $177.69, and are now eyeing their third-straight win. The 20-day moving average has been supporting the security since late June, and longer term PEP sports a 12.6% year-over-year lead.

PEP 20 Day

Options look like an attractive route at the moment. This is per the security's Schaeffer's Volatility Index (SVI) of 16%, which sits in the relatively low 23rd percentile of readings from the last 12 months, meaning options traders are currently pricing in low volatility expectations for the equity.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners