What the Options Market Tells Us About MercadoLibre

Deep-pocketed investors have adopted a bullish approach towards MercadoLibre MELI, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in MELI usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 15 extraordinary options activities for MercadoLibre. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 66% leaning bullish and 13% bearish. Among these notable options, 2 are puts, totaling $91,500, and 13 are calls, amounting to $609,284.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $1830.0 and $2600.0 for MercadoLibre, spanning the last three months.

Volume & Open Interest Development

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 $1830.0 to $2600.0, over the past month.

MercadoLibre Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

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.

Current Position of MercadoLibre

• Trading volume stands at 14,864, with MELI's price up by 2.07%, positioned at $2099.08.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 13 days.

Expert Opinions on MercadoLibre

3 market experts have recently issued ratings for this stock, with a consensus target price of $2486.67.

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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 Cantor Fitzgerald keeps a Overweight rating on MercadoLibre with a target price of $2400. * In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $2500. * An analyst from Morgan Stanley has decided to maintain their Overweight rating on MercadoLibre, which currently sits at a price target of $2560.

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.