PepsiCo Sees Aggressive Deep In-the-Money Call Buying as Bulls Target March 2027

By TrendSpider Editor

PepsiCo, Inc. (PEP) is attracting notable smart money attention today, with four unusual call contracts totaling $1,529,766.70 in combined premium all targeting the same deep in-the-money $120 strike expiring March 19, 2027. The activity stands out given that open interest is being overwhelmed on ev

PepsiCo Sees Aggressive Deep In-the-Money Call Buying as Bulls Target March 2027

PepsiCo, Inc. (PEP) is attracting notable smart money attention today, with four unusual call contracts totaling $1,529,766.70 in combined premium all targeting the same deep in-the-money $120 strike expiring March 19, 2027. The activity stands out given that open interest is being overwhelmed on every single contract, with volume-to-open-interest ratios ranging from 436% to 771%, signaling fresh, aggressive positioning rather than routine hedging. PEP shares are essentially flat on the session at $142.34, up just 0.05%, and sit well off their 52-week high of $171.48 while remaining above the 52-week low of $133.73.

Key Drivers of the PEP Stock Move

• Main Catalyst: Four separate call contracts on the $120 strike expiring March 19, 2027 printed with sizes of 151, 216, 122, and 139 contracts, generating total premium of $1,529,766.70. Every contract carried open interest ratios far above normal, from 436% to 771%, confirming these are new positions being opened into thin existing interest.
• Bull Case: The $120 strike sits meaningfully below the current price of $142.34, meaning all four contracts are deep in the money. Buyers of deep ITM calls are typically expressing high-conviction directional bets with a longer time horizon, and the March 2027 expiry gives this trade roughly seven months to play out. The sheer repetition of the same strike, expiry, and directionality across four separate prints suggests a coordinated or institutional actor building a position in size.
• Bear Case: PEP shares have struggled to reclaim higher ground, trading closer to the 52-week low of $133.73 than to the 52-week high of $171.48. Deep ITM calls can also be used as stock substitutes or as part of more complex spread strategies that are not inherently bullish on a standalone basis. With the stock up only 0.05% today, the options flow has not yet translated into visible price momentum.

The forward setup for PEP is worth watching closely in the context of this options activity. The March 2027 expiry window suggests whoever is behind these trades is not looking for a quick pop but rather anticipates a meaningful recovery or continuation move over the next several months. PepsiCo has faced a challenging operating environment in recent periods, with consumer spending pressures and volume sensitivity weighing on the broader staples sector. Any signs of a demand rebound, pricing power normalization, or positive earnings revision cycle could act as the catalyst this position is positioned to capture. The deep ITM structure limits time decay risk while preserving upside participation, which is consistent with a patient institutional setup rather than speculative short-term activity.

PEP Unusual Options Activity

All four unusual contracts flagged today share identical parameters, pointing to a concentrated and deliberate trade thesis:

• Contract 1: Call, $120 strike, expiring March 19, 2027 | Volume: 151 | Open Interest: 539% | Premium: $366,945.10
• Contract 2: Call, $120 strike, expiring March 19, 2027 | Volume: 216 | Open Interest: 771% | Premium: $525,981.60
• Contract 3: Call, $120 strike, expiring March 19, 2027 | Volume: 122 | Open Interest: 436% | Premium: $297,680.00
• Contract 4: Call, $120 strike, expiring March 19, 2027 | Volume: 139 | Open Interest: 496% | Premium: $339,160.00

Combined, the four contracts represent $1,529,766.70 in total premium deployed on a single bullish thesis. The absence of any put activity in today's unusual flow reinforces the one-sided, directional nature of the trade.

PEP Seasonality

Late August and early September have historically been a transitional period for consumer staples names like PepsiCo, as back-to-school demand provides a modest seasonal tailwind for beverage and snack volumes. A March 2027 expiry positions this trade to capture any fourth-quarter demand surge as well as the typical early-year reset in institutional positioning.

PEP Relative Performance

PEP's near-flat session gain of 0.05% today offers little near-term directional signal on its own. With the stock at $142.34, it remains roughly 17% below its 52-week high of $171.48 and just 6.4% above its 52-week low of $133.73, indicating that PEP has been a notable underperformer relative to the broader market over the past year and has significant ground to recover before returning to prior highs.