DailyPlay – Pepsico Inc (PEP) – March 28, 2022

View PEP Trade

Strategy Details

Strategy: Call Credit Spread

Strategy Direction: Bearish

Details: Sell to open May 6, 2022 $165/$170 Call Vertical @ $2.30 Credit

Counter Trend Signal: This is a bearish vertical spread trade on the a ETF that has a bullish 1M trend.

1M/6M Trends: Bullish/Neutral

Technical Score: 9/10

OptionsPlay Score: 111

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Investment Rationale

Our bearish DailyPlay today is Pepsico Inc (PEP). PEP is part of the Staples sector that has shown long-term underperformance relative to the S&P 500 and losing relative strength in recent sessions. PEP has recently rallied after declining to the $153 support level. Price is losing momentum near the $165 resistance area which provides an excellent risk/reward bearish entry.