MercadoLibre Unusual Options Activity

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 38 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 44% bullish and 44%, bearish.

Out of all of the special options we uncovered, 20 are puts, for a total amount of $770,007, and 18 are calls, for a total amount of $917,819.

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 $1120.0 and $2020.0 for MercadoLibre, spanning the last three months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of MercadoLibre stands at 68.15, with a total volume reaching 127.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in MercadoLibre, situated within the strike price corridor from $1120.0 to $2020.0, throughout the last 30 days.

MercadoLibre Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

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.

Having examined the options trading patterns of MercadoLibre, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

MercadoLibre's Current Market Status

• Trading volume stands at 193,391, with MELI's price down by -1.04%, positioned at $1740.5.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 38 days.

Expert Opinions on MercadoLibre

2 market experts have recently issued ratings for this stock, with a consensus target price of $2025.0.

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. * Consistent in their evaluation, an analyst from Wedbush keeps a Outperform rating on MercadoLibre with a target price of $2100. * Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for MercadoLibre, targeting a price of $1950.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for MercadoLibre, Benzinga Pro gives you real-time options trades alerts.