Investors with a lot of money to spend have taken a bullish 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 22 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 27% bullish and 18%, bearish.
Out of all of the special options we uncovered, 8 are puts, for a total amount of $363,188, and 14 are calls, for a total amount of $690,268.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1700.0 to $2400.0 for MercadoLibre over the recent three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for MercadoLibre options trades today is 91.42 with a total volume of 149.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for MercadoLibre's big money trades within a strike price range of $1700.0 to $2400.0 over the last 30 days.
MercadoLibre Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI | PUT | SWEEP | NEUTRAL | 10/18/24 | $77.6 | $75.5 | $76.5 | $2020.00 | $115.0K | 6 | 15 |
| MELI | CALL | SWEEP | BEARISH | 12/20/24 | $180.7 | $177.1 | $177.1 | $2000.00 | $106.2K | 58 | 8 |
| MELI | CALL | SWEEP | BULLISH | 09/20/24 | $65.0 | $62.3 | $65.0 | $2000.00 | $65.0K | 422 | 22 |
| MELI | CALL | TRADE | BEARISH | 09/20/24 | $64.9 | $63.0 | $63.0 | $2000.00 | $63.0K | 422 | 10 |
| MELI | CALL | TRADE | NEUTRAL | 12/18/26 | $628.0 | $610.0 | $620.43 | $1800.00 | $62.0K | 6 | 1 |
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.
In light of the recent options history for MercadoLibre, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Where Is MercadoLibre Standing Right Now?
- Currently trading with a volume of 148,259, the MELI's price is up by 0.65%, now at $2008.17.
- RSI readings suggest the stock is currently may be overbought.
- Anticipated earnings release is in 62 days.
What Analysts Are Saying About MercadoLibre
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $2235.0.
- Consistent in their evaluation, an analyst from BTIG keeps a Buy rating on MercadoLibre with a target price of $2250.
- Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for MercadoLibre, targeting a price of $2200.
- An analyst from JP Morgan has decided to maintain their Overweight rating on MercadoLibre, which currently sits at a price target of $2400.
- An analyst from BTIG persists with their Buy rating on MercadoLibre, maintaining a target price of $2025.
- Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for MercadoLibre, targeting a price of $2300.
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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