PepsiCo Inc (NASDAQ: PEP) shares are down 2.3% to $135.59 this morning, ending a five-day winning streak. The stock has recovered recently from a six-year low of $123.47 reached on October 7, but it is retracing after hitting resistance at the 120-day moving average. Year-to-date, shares are down 5.4%.
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Options traders are displaying a bearish outlook today, with over 55,000 contracts exchanged, indicating 1.7 times the average intraday volume. The net option delta volume for PepsiCo stands at -52,567 shares, reflecting that bearish activity is exceeding bullish activity. This negative delta is largely attributed to sold calls, suggesting a change in sentiment.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PepsiCo's 10-day call/put volume ratio is 2.84, placing it in the 82nd percentile of its annual range. Additionally, the Schaeffer's Volatility Index (SVI) for PepsiCo is at 22%, which is in the 26th percentile of its annual range, indicating that options are relatively inexpensive at this time.
Recently, PepsiCo renewed its beverage partnership with Taco Bell, extending it through 2036, shortly after KFC announced its switch to Coca-Cola products in the U.S. Zacks Investment Research reported that PepsiCo had been one of the most searched stocks recently.