Pepsico (PEP) is up $1.39 to $65.89 and implied volatility in the options on the stock is moving higher today after New York Post reported today that the company’s Board is divided regarding a potential split of the company’s snack and beverage units. According to the story, a source said “I hear there is going to be a shakeup” at Pepsico. Shares rallied early and hit a morning high of $66.65. Meanwhile, options on the stock are seeing high volume for a second day. Open interest increased by 37K after yesterday’s action. Dec 65 calls and 60 puts saw the largest increase. Today, Dec 67.5 calls are the most actives. 11,540 traded, mostly in smaller sizes. The top trade is a multi-exchange sweep of 745 contracts at the 41-cent asking price. Nov 67.5, Dec 65, Jan 70 and Jan 67.5 calls on PEP are actively traded as well. Total volume is 37,000 calls/14,000 puts and implied volatility in the options on the stock is up 11 percent to 21.5.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.