52-Week High Alert: Trading today’s movement in PEPSICO
Quantcha now offering
Quantchabot has detected a promising
PEP was recently trading at $166.39 and has an implied volatility of 20.50% for this period. Based on an analysis of the options available for PEP expiring on 21-Jan-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $166.41-$179.02 at expiration. In this scenario, the average linear return for the trade would be 52.43%.
52 week high: PEPSICO recently reached a new 52-week high at $167.29. PEP had traded in the range $128.32-$166.80 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if PEP maintains its current direction and does not revert back to pricing on the bearish side of $166.39 on 21-Jan-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if PEPSICO closes at or above $166.15 on 21-Jan-2022. Based on our risk-neutral analysis, there is a 50.86% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the