Pepsico Inc. (PEP) just reported earnings on October 3, 2019, before the market opened. Earnings Per Share (EPS) was reported at $1.56, after analysts had expected $1.50 per share. As a result, PEP opened up +3.3%, and closed for the day up +3.0% at 137.93. Since earnings was reported, the stock has traded in a range from 136.50 to 140.45.
Price Volatility Against Expectations
Ahead of earnings, option traders were expecting a ± 3.0% move for this date, so the earnings move of +3.0% was right in line with expectation. PEP has only experienced 3 larger-than-expected earnings moves in the last 12 quarters.
Earnings Option Strategies