Pepsico (PEP) Offering Possible 6.61% Return Over the Next 36 Calendar Days

Pepsico's most recent trend suggests a bearish bias. One trading opportunity on Pepsico is a Bear Call Spread using a strike $95.00 short call and a strike $100.00 long call offers a potential 6.61% return on risk over the next 36 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $95.00 by expiration. The full premium credit of $0.31 would be kept by the premium seller. The risk of $4.69 would be incurred if the stock rose above the $100.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Pepsico is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Pepsico is bearish.

The RSI indicator is at 40.64 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Pepsico

Cramer: DPS deserves to be bought
Fri, 17 Oct 2014 22:15:00 GMT

Cramer: DPS deserves to be bought
Fri, 17 Oct 2014 22:15:00 GMT

PepsiCo Helping Stir Corporate Bond Offerings to Life
Fri, 17 Oct 2014 19:56:31 GMT

PepsiCo, Inc. — Moody's rates PepsiCo's notes at A1; outlook stable
Fri, 17 Oct 2014 17:18:02 GMT

Top Justice Deputy Cole Ready to Leave Post With Holder
Thu, 16 Oct 2014 20:29:59 GMT

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