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PEP Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 65/100
PepsiCo Inc (Consumer Defensive) · $157.06 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
Quick Take
PEP is trading at $157.06 with RSI at 49 (neutral territory). Options IV is at 26% — 43% below its 30-day average of 45%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
49
IV Today
25.7%
IV vs 30d Avg
-43%
MACD
bullish
ADX
21
MFI
45
The Setup
PEP Covered Call
LONG STOCK
100 shares @ $157.06
SHORT CALL
$170 Jun '26 · $1.9/sh
Net Cost
$15,516
Max Profit
+$1,484
Break-even
$155.16
Projected P&L at Target
+$1,484
(9.6%)
P&L at Expiry
P&L Scenarios
What happens at different PEP prices by expiry:
| PEP Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $126 (-20%) | -$2,953 | -$2,951 | -$2,951 | -$2,951 |
| $134 (-15%) | -$2,176 | -$2,168 | -$2,166 | -$2,166 |
| $141 (-10%) | -$1,421 | -$1,394 | -$1,382 | -$1,381 |
| $149 (-5%) | -$714 | -$650 | -$605 | -$595 |
| $154 (-2%) | -$329 | -$238 | -$155 | -$124 |
| $157 (0%) ← now | -$94 | +$16 | +$128 | +$190 |
| $160 (+2%) | +$123 | +$250 | +$391 | +$504 |
| $165 (+5%) | +$409 | +$556 | +$735 | +$975 |
| $170 (+8%) ← target | +$665 | +$823 | +$1,021 | +$1,484 |
| $173 (+10%) | +$781 | +$940 | +$1,137 | +$1,484 |
| $181 (+15%) | +$1,031 | +$1,175 | +$1,338 | +$1,484 |
| $188 (+20%) | +$1,182 | +$1,299 | +$1,411 | +$1,484 |
Why This Strategy, Why Now
- RSI at 49
- IV -43% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 21 — moderate trend
- No squeeze — no imminent breakout
Key Risks
PEP has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if PEP approaches the strike before expiry.