PepsiCo just handed dividend investors and options sellers a rare gift
I normally don't post about individual stocks, but PepsiCo (PEP) caught my attention.
Right now:
  • Dividend yield is around 4.06%, one of the highest in the company's history.
  • Stock has pulled back from ~$190 to ~$130.
  • 53 straight years of dividend increases.
  • Fundamentals are still solid, no obvious collapse in the business.
For options traders, it gets even more interesting:
  • IV Rank is 34.5, which makes options premiums elevated.
  • This could be a good setup for selling cash-secured puts, or even running the Wheel strategy if you want to build a position.
I'm sketching out a few trade ideas now, but curious how are others approaching it?
Would you consider starting a Wheel on PEP here, selling puts aggressively, or would you stay away given the broader market risks?
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Options Jive
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PepsiCo just handed dividend investors and options sellers a rare gift
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