$PEP daily pick: sell Nov 20 $125 cash-secured put

$PEP: I'm selling the Nov 20 $125 put and getting paid to wait.

About 10% below the 200-day
Credit $0.98 for ~0.8% in 35 days (~8% annualized)
Breakeven $124.02 sits in the $120 to $127 buy zone
FCF yield about 5.9% and Street PT around $142

I think this is a clean setup because earnings already printed Oct 8 so there's no ER gap into Nov 20 and if I get assigned I'm fine owning Pepsi in the buy zone.

Would you rather get paid $98 to wait at $125 or buy shares here at $131?

Not financial advice

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Why a cash-secured put and not shares? The stock is still under a falling 200-day near $146. I'd rather collect premium and let it come into the buy zone than chase it here.

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The Long Investor buy zone is $120 to $127 so a $125 put assigned is fine with me. What invalidates it: a weekly close under the 52-week low at $123.47 without a bounce. Then I'm early and I'd rethink size.

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Earnings already reported Oct 8 (beat: $2.34 vs $2.29). Next print is around Feb 2 2027 so Nov 20 expires clean with no ER gap risk.

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What I'd watch: a close back above the 50-day near $134.5 tells me the bounce is real. Consumer or cola headlines can still knock this around so size it like you're buying 100 shares not like free money.

Sources: FMP: $PEP quote, financials and price history · Robinhood: $PEP equity and Nov 20 2026 $125 put chain · SEC EDGAR: $PEP filings

Not financial advice. For informational and educational purposes only.