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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Spekulatius who wrote (33473)2/7/2009 1:05:08 PM
From: E_K_S  Respond to of 78748
 
Trading Tools to Build Your Portfolio: PepsiCo, Inc. (PEP)
Did strong earnings from a bottler burst options bettors' bearish bubble?
schaeffersresearch.com

From the article:"...Call Volume Pops

On Thursday, options players scooped up nearly 12,500 calls on the carbonation king, more than 3.5 times the stock's average daily volume of fewer than 3,400 contracts. Most of the bulls were placing their bets a little further into the future; the stock's April 52.50 call was the most popular, with more than 5,000 contracts crossing the tape.

However, it seems options traders yesterday diverged from the bearish path, as the recent surge in call volume stands in contrast to the sentiment on the International Securities Exchange (ISE). During the past 10 days, options players on the ISE have purchased (to open) more puts than calls on PEP. What's more, the ratio of 1.81 is only 2 percentage points from an annual pessimistic peak. In other words, during the past couple of weeks, traders on the ISE have been significantly more skeptical than usual.

So, why the bombardment of bullish bets?..."

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It looks like investors are bullish on PEP. It appears that the stock recently got into value territory.

EKS