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Options Traders Double Down on Coca-Cola Rival

PEP has just fallen below its year-to-date breakeven mark

Managing Editor
Oct 7, 2024 at 3:41 PM
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Shares of PepsiCo Inc (NASDAQ:PEP) are trading down 0.5% at $167.21 this afternoon, with traders gearing up for the company's third-quarter earnings, which are due out before the open tomorrow, Tuesday, Oct. 8. PEP is eyeing its fourth consecutive daily drop, its latest pullback dragging the shares below the year-to-date breakeven mark. The equity is also trapped below a confluence of key moving averages, with the 10-day pressing sharply overhead.

dailypep10day

Over the past two years, PEP has tended to outperform after earnings, finishing six of its eight next-day sessions higher, averaging a move of 2.3%. This time around, options traders are anticipating a higher-than-usual post-earnings shift of 4.7%, regardless of direction.

Options traders are gearing up for the event, too, with double the average trading volume being seen in the options pits. An impressive 17,000 calls and 17,000 puts have been traded so far, with the weekly 10/11 160-strike put and 175-strike call from the same series most popular. 

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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