January 2026 Options Now Available For PepsiCo (PEP)

The piece presents two options-income ideas on PepsiCo (PEP): selling the $135 put (bid $0.39) would obligate buying shares at a $134.61 net cost basis versus the current $150.42, is roughly 10% out-of-the-money, and is modeled at an 83% chance to expire worthless, yielding 0.29% on the cash commitment (2.11% annualized) if it does (commissions/dividends excluded). The covered-call alternative—selling the $170 call (bid $0.22) against shares purchased at $150.42—would cap upside at a 13.16% total return to Jan 2026 if assigned, is ~13% out-of-the-money with an 84% modeled chance to expire worthless, and would add a 0.15% boost (1.07% annualized); implied vols are 30–32% versus a trailing 12‑month realized vol of 23%, suggesting option premium is modestly rich to realized volatility, and Stock Options Channel will track odds and charts over time.

Analysis

The article outlines two option-income strategies on PepsiCo (PEP) using current option quotes against the $150.42 stock price. Selling the $135 put at a $0.39 bid would obligate purchase at a $134.61 net cost basis, is roughly 10% out-of-the-money, and Stock Options Channel models an 83% probability the put expires worthless; if so, the premium yields 0.29% on cash committed (2.11% annualized), excluding commissions and dividends.

The covered-call alternative is selling the $170 call at a $0.22 bid against shares bought at $150.42, which would cap total return at 13.16% to the January 2026 expiration if assigned; the strike is about 13% out-of-the-money and carries an 84% modeled chance to expire worthless, producing a 0.15% immediate boost (1.07% annualized) if it does.

Implied volatilities are 30% on the put and 32% on the call versus a trailing 12-month realized volatility of 23%, indicating option premium is modestly richer than recent realized moves. The strategies offer low absolute yield relative to assignment risk and capped upside; monitoring odds, volatility shifts, and transaction/dividend effects is important before implementing either trade.

Key Decisions for Investors

• Consider selling the $135 put only if you are comfortable being assigned shares at a $134.61 net basis; the trade carries an 83% modeled chance to expire worthless but yields just 0.29% on cash (2.11% annualized), so size positions conservatively
• If you already own PEP, selling the $170 Jan 2026 covered call can produce a capped 13.16% return if called and has an 84% chance to expire worthless, but accept that the immediate premium boost is only 0.15% (1.07% annualized) and dividends/commissions will alter net returns
• Monitor implied vs realized volatility (30–32% implied vs 23% realized) and track the Stock Options Channel odds chart; avoid large concentrated positions given modest YieldBoosts and the non-negligible probability of assignment which changes equity exposure