Beverage Stock Moves Higher Ahead Of Quarterly Earnings Report

Shares of beverage behemoth PepsiCo (PEP) are rising ahead of the company’s third-quarter earnings, due out before the open tomorrow. At last check, the stock is up 0.7% at $138.11, still enjoying gains from its Sept. 28 bull gap, which sent the stock back above the $134 level. Below, we will take a look at how the equity has performed on the charts as of late, and explore some of the options activity surrounding Pepsi stock ahead of the event. 

The aforementioned $134 level falls in-line with the stock’s year-to-date breakeven level. Meanwhile, PEP boasts a 17% lead over the last six months, while the stock’s 80-day moving average has once more solidified itself as a layer of support. That trendline is also in a prime position to capture any pullbacks the equity may see, should its earnings report fail to impress.

Speaking of earnings, PEP saw positive next-day returns after six of its last eight earnings reports, averaging a swing of 1.8% regardless of direction — including a 1.4% pop back in April. This time around, the options market is pricing in a slightly larger move of 3.5%.

Meanwhile, Pepsi stock’s options pits are leaning put heavy. In fact, the equity sports a 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the elevated 81st percentile of readings from the past 12 months. In other words, a healthier-than-usual appetite for puts of late.

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