Unilever PLC, which owns brands like Dove and Ben & Jerry’s, is at a crucial moment in the market. The stock price dropped from around $71 to test support at $61. This support level has remained strong throughout 2024 and 2025. Recently, the stock bounced back to about $64.78, leading to questions about how sustainable this recovery is. The $61 level has acted as a psychological barrier for nearly two years. Strong buying has kept the price from falling below it during March 2024 and December 2024. Another test in December 2025 saw a quick rebound, showing that market sentiment is strong and buyers are still interested. Unilever’s recent rise from its lows was significant, gaining $3-4 above the $61 level. This bounce was promising and could signal a potential reversal if support at $61 continues. If the stock stays above $64, it might rise to the $68-70 range. However, if it falls below $61, the price could drop further to the $58-59 range, indicating a change in market sentiment. Unilever is at a key turning point, and the market will soon decide its direction. The $61 support level will play a crucial role in determining future price movements. Considering the recent bounce from the $61 level, we also need to think about the macroeconomic factors that caused the earlier drop. The November 2025 CPI data showed an unexpected rise in core inflation, raising concerns about consumer staple margins. The current price action around $64.78 suggests that the market is questioning whether Unilever can keep its pricing power. For those optimistic about Unilever holding steady, buying January 2026 call options with strike prices around $65 or $66 could be a good move. This allows participation in a potential rally towards the $68-70 resistance zone while limiting risk to the premium paid. Additionally, management’s statement reaffirming the full-year 2025 guidance gives more confidence in this recovery. On the flip side, if this is just a temporary bounce, buying put options is an alternative strategy. The weak Black Friday spending data for 2025, which showed no growth compared to last year, supports the idea that consumers are slowing down. If the stock fails to hold above $64 this week, it may be wise to consider February 2026 puts, targeting a break below the crucial $61 support. Implied volatility around this critical price point is likely high, making selling options an appealing strategy for some. We could sell out-of-the-money put credit spreads with a short strike below $61. This trade profits if the stock stays above that key support level until expiration, benefiting from both time decay and price stability. We should also remember the pressure from Nelson Peltz’s Trian Partners in 2023, which pushed for improved operational efficiency. Any bullish options position needs a clear exit plan if Unilever closes below $61 on high volume. That level is essential to our entire strategy.

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