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?