Notable Tuesday Option Activity: GOOG, PEP, MU

Notable options trading volume has been observed in PepsiCo (PEP) and Micron Technology (MU), with volumes representing 50.6% and 45.1% of their respective average daily share volumes. For PEP, significant activity centered on the September 2025 $160 call options, implying bullish conviction for a substantial price increase, while MU saw heavy trading in its October 2025 $90 put options, suggesting either bearish positioning or robust downside hedging over the long term.

Analysis

Significant and concentrated options activity has been observed in both PepsiCo (PEP) and Micron Technology (MU). For PepsiCo, total options volume reached 39,018 contracts, equivalent to 50.6% of its average daily share volume, indicating a substantial increase in derivatives-based trading. The activity was heavily focused on the long-dated September 19, 2025, $160 strike call options, which saw 3,203 contracts traded. This specific flow points towards a defined bullish conviction, with traders positioning for the stock to appreciate above $160 over the next year. Conversely, Micron Technology experienced options volume of 79,913 contracts, or 45.1% of its average daily share volume. In this case, the notable activity was concentrated in the October 17, 2025, $90 strike put options, with 6,847 contracts changing hands. This suggests significant bearish sentiment or, more likely, large-scale hedging activity by institutional investors seeking downside protection below the $90 price level over a long-term horizon.

Key Decisions for Investors

• For PepsiCo, the concentrated buying of long-dated $160 call options can be interpreted as a strong bullish signal from the derivatives market, suggesting investors might consider the $160 level a key future price target.
• For Micron Technology, the high volume in long-dated $90 put options warrants caution; investors holding long positions should assess their risk exposure and could consider hedging strategies, while those looking to enter should investigate the drivers behind this bearish positioning.