Pepsico is at five-month highs after rising all month, and one trader is betting on a floor beneath the stock.
optionMONSTER's tracking systems detected the sale of 3,011 March 65 puts for $0.13 in less than a minute this morning. The volume was well above the strike's open interest of 1,737 contracts at the start of the session, indicating that this is a new position.
PEP is up 0.18 percent to $72.74 after reaching $72.86 earlier in the morning, its highest level since August. The beverage and snack giant ended December below $69 but gapped higher in the first session of 2013 and has been rallying ever since, rising above several key moving averages.
Today's put selling is looking for the stock to stay above $65, which was a key support level last spring. If PEP is above that strike price at expiration in mid-March, the trader will face the obligation to buy the shares. (See our Education section)
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