What the Options Market Tells Us About MercadoLibre

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 12 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 66% bullish and 25%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $55,700, and 10 are calls, for a total amount of $904,280.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $1770.0 to $2200.0 for MercadoLibre over the last 3 months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for MercadoLibre's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across MercadoLibre's significant trades, within a strike price range of $1770.0 to $2200.0, over the past month.

MercadoLibre Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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.

Current Position of MercadoLibre

• With a trading volume of 90,379, the price of MELI is up by 0.76%, reaching $2029.48.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 21 days from now.

Expert Opinions on MercadoLibre

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $2456.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from B of A Securities has decided to maintain their Buy rating on MercadoLibre, which currently sits at a price target of $2500. * In a cautious move, an analyst from Raymond James downgraded its rating to Outperform, setting a price target of $2350. * An analyst from JP Morgan downgraded its action to Neutral with a price target of $2400. * Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for MercadoLibre, targeting a price of $2500. * An analyst from Cantor Fitzgerald downgraded its action to Overweight with a price target of $2530.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for MercadoLibre with Benzinga Pro for real-time alerts.