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 47 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 29% bullish and 38%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $385,286, and 40 are calls, for a total amount of $3,093,745.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $480.0 and $2140.0 for MercadoLibre, spanning the last three months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for MercadoLibre's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of MercadoLibre's whale activity within a strike price range from $480.0 to $2140.0 in the last 30 days.
MercadoLibre 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BULLISH | 01/17/25 | $1338.0 | $1328.0 | $1338.0 | $480.00 | $1.3M | 1 | 10 |
| MELI | PUT | SWEEP | BEARISH | 01/16/26 | $436.0 | $420.0 | $436.0 | $2100.00 | $130.8K | 3 | 4 |
| MELI | CALL | SWEEP | NEUTRAL | 10/18/24 | $55.9 | $50.3 | $53.1 | $2020.00 | $105.7K | 4 | 47 |
| MELI | CALL | TRADE | BULLISH | 09/20/24 | $930.5 | $916.3 | $928.0 | $890.00 | $92.8K | 1 | 0 |
| MELI | CALL | TRADE | BEARISH | 08/16/24 | $155.0 | $150.4 | $150.4 | $1700.00 | $90.2K | 117 | 25 |
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.
Present Market Standing of MercadoLibre
- Trading volume stands at 377,255, with MELI's price up by 3.36%, positioned at $1835.63.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 85 days.
What The Experts Say On MercadoLibre
In the last month, 3 experts released ratings on this stock with an average target price of $2175.0.
- Maintaining their stance, an analyst from BTIG continues to hold a Buy rating for MercadoLibre, targeting a price of $2025.
- Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on MercadoLibre with a target price of $2400.
- An analyst from Barclays has decided to maintain their Overweight rating on MercadoLibre, which currently sits at a price target of $2100.
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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