Smart Money Is Betting Big In MELI Options

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 35% bullish and 42%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $270,550, and 10 are calls, for a total amount of $498,879.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1500.0 to $2240.0 for MercadoLibre over the recent three months.

Insights into Volume & Open Interest

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 $1500.0 to $2240.0 over the preceding 30 days.

MercadoLibre Option Activity Analysis: 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 when last reported. 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

Present Market Standing of MercadoLibre

• Currently trading with a volume of 58,046, the MELI's price is up by 2.33%, now at $2184.14.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 37 days.

Expert Opinions on MercadoLibre

In the last month, 2 experts released ratings on this stock with an average target price of $2525.0.

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 Goldman Sachs keeps a Buy rating on MercadoLibre with a target price of $2750. * An analyst from JP Morgan has decided to maintain their Neutral rating on MercadoLibre, which currently sits at a price target of $2300.

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.