Pepsico (PEP) Offering Possible 44.93% Return Over the Next 29 Calendar Days

Pepsico's most recent trend suggests a bullish bias. One trading opportunity on Pepsico is a Bull Put Spread using a strike $120.00 short put and a strike $110.00 long put offers a potential 44.93% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $120.00 by expiration. The full premium credit of $3.10 would be kept by the premium seller. The risk of $6.90 would be incurred if the stock dropped below the $110.00 long put 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 42.9 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

U.S. Companies Rush to Bond Market to Refinance Commercial Paper
Tue, 17 Mar 2020 23:15:22 +0000
(Bloomberg) — With the market for short-term corporate debt seizing up in the U.S., some of the world’s biggest companies, including Exxon Mobil Corp. and PepsiCo Inc., turned back to the bond market to raise cash on Tuesday.In a sign of just how badly financial markets have been thrown out of whack by the coronavirus outbreak, yields on normally ultra-safe corporate debt maturing in as little as 30 days — known as commercial paper — have been surging faster than yields on bonds maturing in 10 years or more.The Federal Reserve announced steps to try to unlock the commercial paper market, but some borrowers opted not to wait for that to happen. Exxon led the day with an $8.5 billion sale, while Pepsi borrowed $6.5 billion.Many of the issuers Tuesday were planning to use the debt proceeds to refinance their commercial paper, which companies rely on to cover short-term financing needs like payroll.Read more: Fed Restarts Commercial Paper Facility to Ease Market StrainUsually it’s cheaper for companies to borrow in short-term markets rather than issuing longer-maturity bonds. But the nearer-term risk of recession and rising defaults have cast doubt on some companies’ ability to finance day-to-day operations. Companies have issued less commercial paper as a result and have often resorted to drawing down credit lines instead.“There’s definitely issues in the commercial paper market, and these companies are going to hit the bond market to shore up their financing,” said Daniel Oh, a portfolio manager at Osterweis Capital Management.The Fed will reintroduce the Commercial Paper Funding Facility, a measure from the financial crisis to shore up short-term funding markets, according to a statement Tuesday. The Treasury will provide $10 billion of credit protection from its Exchange Stabilization Fund. The Fed rolled out the facility in 2008 as global credit markets seized up.“By providing short-term credit, the CPFF will help American businesses manage their finances through this challenging period,” Treasury Secretary Steven Mnuchin said in a separate statement.Verizon Communications Inc. led the charge of almost a dozen frequent and high-quality U.S. investment-grade issuers Tuesday that managed to sell $27.6 billion of debt. They were the first to do so since Friday.Read more: IG ANALYSIS US: Exxon, Verizon, PepsiCo Lead Biggest Day of 2020Europe’s market also rebooted, starting with three covered deals, among the safest of offerings due to their asset coverage. However, one of the initial borrowers later chose to stand down, citing “adverse market conditions.”Primary markets have been mostly shut in the last few weeks as the coronavirus outbreak has amplified risk premiums and tips the economy closer to recession. In the U.S., investment-grade spreads have nearly doubled in less than two weeks, and the high-yield market hasn’t had a deal price since March 4.Elsewhere in global credit markets today:U.S.Investment-grade and high-yield credit-default swaps indexes improved as Wall Street stocks rallied after the U.S. government stepped up its efforts to offset the financial damage caused by the coronavirus. Treasuries slumped.Investment-grade bond spreads ended the day at the highest since 2009 at 255 basis points, versus 242 basis points Monday despite the risk-on rally in other assets, while high-yield spreads are now at the widest since 2011 at 846 basis points, up from 827 basis points yesterdayHigh-yield bond spreads have to blow through 1,000 basis points before there’s a buying opportunity, according to Oksana Aronov, head of market strategy for absolute return fixed income at JPMorgan Asset ManagementThe cost to protect against a default by Boeing surged to the highest level on record as the planemaker was said to have asked White House and Congressional officials for short-term aid for itself, suppliers and airlinesS&P says the default rate on non-financial corporates in the U.S. may rise above 10% and into the high single digits in Europe over the next 12 monthsMore than 30 power and energy companies are in talks with banks to discuss raising new financing or drawing down on their existing loan facilitiesEuropeThe earlier positive tone was enough to tempt a trio of borrowers to open sales of new top-rated covered bonds, which are among the safest of debt securities because they’re backed by ring-fenced assets, usually mortgages. However, TD Bank later stood down, citing market conditions.Royal Bank of Canada offered 1 billion euros ($1.1 billion) of covered bonds due in five years at 40 basis points above midswaps after failing to tighten pricing from an opening targetTD Bank and Canadian Imperial Bank of Commerce had both opened books on floating-rate sterling sales, with TD eventually deciding to postpone its sterling saleThe coronavirus is putting Europe’s banks under the kind of systemic pressure last seen during the 2012 euro zone debt crisisEuro high-grade bond spreads closed 10bps higher Monday at 191 and the highest since September 2012Almost three-quarters of euro IG company bonds are indicated at their lowest level in a year, data compiled by Bloomberg showEuro high-grade company bond yields have nearly quadrupled in three weeks and now stand at about 1.26% and the most since January 2019AsiaCurrency declines are exacerbating problems for lower-rated companies, with a 4% drop in the Indian rupee versus the dollar in the last month threatening to increase debt servicing costs for companies that face a record $7.5 billion of overseas bonds and loan repayments from April-June.Spreads on Asia dollar bonds were about 5-20 basis points wider on Tuesday morning, with wide bid-offer spreads, according to a trader. That leaves spreads set to reach their highest in more than eight years, according to a Bloomberg Barclays indexStill, the Markit iTraxx Asia ex-Japan index of credit-default swaps fell about 6.5 basis points to about 137, according to traders, easing from its highest level since 2016, according to data compiled by BloombergKorea Development Bank extended funds to three low-cost carriers: Tway Air, Air Seoul and Air BusanAustralian funding markets remain stressed even as the country’s central bank pours record amounts of liquidity into the system. The three-month bank bill-OIS spread is holding at levels last seen a year ago amid the trade warFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

PepsiCo, Inc. — Moody's rates PepsiCo notes A1; Ratings on review for downgrade
Tue, 17 Mar 2020 18:35:10 +0000
Moody's Investors Service, (“Moody's”) today assigned an A1, rating on review for downgrade, to PepsiCo, Inc's (“PepsiCo”) senior unsecured notes in multiple tranches. PepsiCo's A1 long-term senior unsecured rating is supported by its strong snack food and beverage franchises, extensive global footprint, and solid innovation pipelines.

US companies raise $25bn as bond market thaws
Tue, 17 Mar 2020 11:19:32 +0000
On Tuesday, the corporate bond market thawed, providing an opening for better quality groups to issue debt — albeit at higher rates than in recent months. Investment grade utility Entergy had planned to raise cash in the bond market on Tuesday but postponed its plans, according to two people briefed on the matter.

The Highly Investable Consumer Businesses
Mon, 16 Mar 2020 15:37:32 +0000
From an investment perspective, predictable consumer businesses share these traits Continue reading…

Why Is PepsiCo (PEP) Down 13% Since Last Earnings Report?
Sat, 14 Mar 2020 15:30:03 +0000
PepsiCo (PEP) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Be Sociable, Share!

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.