Investors with a lot of money to spend have taken a bearish stance on MercadoLibre MELI.
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with MELI, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 14 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 21% bullish and 28%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $242,754, and 7 are calls, for a total amount of $468,564.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $900.0 to $2160.0 for MercadoLibre over the last 3 months.
Volume & Open Interest Development
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in MercadoLibre's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to MercadoLibre's substantial trades, within a strike price spectrum from $900.0 to $2160.0 over the preceding 30 days.
MercadoLibre Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BULLISH | 01/16/26 | $936.0 | $928.0 | $936.0 | $900.00 | $187.2K | 5 | 2 |
| MELI | CALL | TRADE | BULLISH | 05/31/24 | $324.0 | $316.8 | $324.0 | $1400.00 | $64.8K | 8 | 2 |
| MELI | CALL | TRADE | BEARISH | 03/21/25 | $270.8 | $266.4 | $266.4 | $1700.00 | $53.2K | 0 | 2 |
| MELI | CALL | SWEEP | BEARISH | 07/19/24 | $42.2 | $41.5 | $42.1 | $1800.00 | $50.5K | 66 | 14 |
| MELI | CALL | TRADE | NEUTRAL | 06/07/24 | $229.2 | $214.7 | $222.92 | $1510.00 | $44.5K | 2 | 2 |
About MercadoLibre
MercadoLibre runs the largest e-commerce marketplace in Latin America, with more than 218 million active users and 1 million active sellers across 18 countries stitching into its commerce network or fintech solutions as of the end of 2023. The company operates a host of complementary businesses to its core online shop, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
After a thorough review of the options trading surrounding MercadoLibre, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
MercadoLibre's Current Market Status
- Currently trading with a volume of 95,280, the MELI's price is up by 0.27%, now at $1712.54.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 63 days.
What The Experts Say On MercadoLibre
In the last month, 3 experts released ratings on this stock with an average target price of $1966.6666666666667.
- An analyst from Jefferies has elevated its stance to Buy, setting a new price target at $2100.
- An analyst from Barclays persists with their Overweight rating on MercadoLibre, maintaining a target price of $2000.
- In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $1800.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest MercadoLibre options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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