PepsiCo Options Trading Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy PEP?
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $165.00 put option is $9.80, and if an investor sells this option, they commit to buying the stock at $165.00, effectively lowering their cost basis to $155.20, which is about a 2% discount from the current price of $168.95, making it attractive for potential PEP buyers.
- Yield Potential Analysis: Should the put option expire worthless, the investor could realize a 5.94% return, or an annualized yield of 8.24%, referred to as YieldBoost, highlighting the strategy's potential appeal.
- Call Option Returns: The $170.00 call option has a current bid of $11.10, and if an investor buys PEP shares at $168.95 and sells this call option, they could achieve a total return of 7.19% if the stock is called away at expiration.
- Risk-Reward Trade-off: The $170.00 call option has a 47% chance of expiring worthless, in which case the investor retains both the stock and the premium collected, enhancing their return by an additional 6.57%, with an annualized yield of 9.12%.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to fall
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 167.280
Low
144.00
Averages
161.90
High
172.00
Current: 167.280
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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