Core Viewpoint - Keurig Dr Pepper Inc plans to acquire JDE Peet's for $18 billion and subsequently split into two divisions focusing on coffee and cold beverages, leading to a significant drop in share price [1][2]. Group 1: Company Actions - The company intends to purchase Peet's Coffee parent JDE Peet's for $18 billion, which is a strategic move to enhance its coffee segment [1]. - Following the acquisition, the company will separate into two distinct parts: one dedicated to coffee sales and the other to cold beverages, including soda, energy drinks, and tea [1]. Group 2: Market Reaction - Shares of Keurig Dr Pepper Inc fell by 7.5%, trading at $32.49, marking the worst daily drop since March 2020 and breaking below the $35 support level [2]. - The stock is currently at its lowest point since February, resulting in a minimal year-to-date gain [2]. Group 3: Options Market Activity - The options market is experiencing heightened activity, with 4,828 calls and 1,727 puts traded, which is seven times the average daily volume [2]. - The most popular options are the September 32 and 33 calls, indicating new positions being opened [2]. Group 4: Trader Sentiment - Long-term options traders have shown increased bullish sentiment, with a 50-day call/put volume ratio of 4.12, ranking higher than 82% of readings from the past year [3]. - Short-term traders also exhibit a call-bias, reflected in a Schaeffer's put/call open interest ratio of 0.37, which is in the 28th percentile of the past 12 months [4].