Unilever PLC, responsible for brands like Dove and Ben & Jerry’s, is currently navigating a critical market moment. The stock experienced a decline from the $71 range to test a support level at $61, which has held firm throughout 2024 and 2025. Recently, the stock rebounded to around $64.78, raising questions about the sustainability of this recovery.
The $61 level has served as a psychological barrier for nearly two years. In March 2024 and December 2024, it resisted further decline with strong buyer intervention. December 2025 witnessed another test with a subsequent sharp rebound. Such repeated defence of this level suggests a strong market sentiment and ongoing buying interest.
Unilever’s recent bounce from its lows was notable, gaining about $3-4 above the $61 level. This rebound was decisive, hinting at potential momentum for a reversal, provided support at $61 remains intact. If the stock maintains support above $64, targets could rise to the $68-70 range. However, a breakdown below $61 could lead to further declines towards the $58-59 zone, marking a potential shift in market sentiment.
Ultimately, Unilever faces a pivotal juncture, with the market poised to decide its next direction. The $61 support will be crucial in shaping future price actions.
Given the recent sharp bounce off the $61 support level, we must consider the macro-economic pressures that caused the drop in the first place. The November 2025 CPI data released last week showed a surprise uptick in core inflation, which explains the market’s concern over consumer staple margins. This recent price action around $64.78 suggests the market is now weighing whether Unilever can maintain pricing power.
For those bullish on Unilever holding this line, buying January 2026 call options with strike prices around $65 or $66 looks attractive. This allows us to participate in a potential rally toward the $68-70 resistance zone while defining our maximum risk to the premium paid. Management’s statement yesterday reaffirming full-year 2025 guidance adds a fundamental reason to believe this bounce has strength.
Conversely, if we suspect this is a dead-cat bounce, buying put options is the direct play. The lackluster Black Friday spending data for 2025, which showed flat year-over-year growth, supports the thesis that the consumer is weakening. A failure to hold above $64 this week would be a signal to consider February 2026 puts, targeting a break below the crucial $61 support.
Implied volatility is likely elevated around this pivotal price point, making selling options a viable strategy for some. We could sell out-of-the-money put credit spreads with a short strike below $61, a trade that profits if the stock simply stays above that key support level through expiration. This strategy benefits from both time decay and the stock holding its ground.
We have to remember the pressure from Nelson Peltz’s Trian Partners back in 2023, which forced a focus on operational efficiency that the market still expects today. Any bullish options position should be structured with a clear exit plan if Unilever closes below $61 on heavy volume. That level is the undisputed line in the sand for our entire thesis.
