PepsiCO Inc. : Cash Secured Puts

Pepsi is a little bit under its fair value. Morningstar value it at about $122 and its competitive advantage is high .

“We believe that PepsiCo enjoys a wide economic moat created by intangible assets and cost advantages related to the manufacturing and distribution of its products. Pepsi is a formidable player in the nonalcoholic beverage and snack categories, with the top seven brands in salty snacks and nearly a fourth of the share of the United States liquid refreshment beverage market, according to management.” (Morningstar report)

Let’s see our Open Interest

There are no big supports, but on the other hand I see ITM call under the closing price. Good sign. I see a strike under my standard deviation with a good premium.

Conclusion : Sold 1 Weekly CSP , strike $108@0.49,  Exp Feb 22. Weekly return 0.45% , Annual return on investment 20%

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