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 30 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 23% bullish and 76%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $1,022,604, and 23 are calls, for a total amount of $2,389,737.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $820.0 to $2000.0 for MercadoLibre over the recent 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 $820.0 to $2000.0, over the past month.
MercadoLibre 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MELI | PUT | TRADE | BEARISH | 01/16/26 | $920.00 | $790.0K | 3 | 0 |
| MELI | CALL | TRADE | BULLISH | 01/16/26 | $2000.00 | $567.5K | 14 | 50 |
| MELI | CALL | TRADE | NEUTRAL | 01/16/26 | $2000.00 | $567.5K | 14 | 0 |
| MELI | CALL | SWEEP | NEUTRAL | 01/19/24 | $1400.00 | $132.1K | 255 | 44 |
| MELI | CALL | SWEEP | BEARISH | 01/19/24 | $1400.00 | $120.0K | 255 | 23 |
About MercadoLibre
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 148 million active users and 1 million active sellers as of the end of 2022 across an 18-country footprint. The company also operates a host of complementary businesses, 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.
MercadoLibre's Current Market Status
- With a trading volume of 291,952, the price of MELI is up by 2.35%, reaching $1482.0.
- Current RSI values indicate that the stock is may be overbought.
- Next earnings report is scheduled for 94 days from now.
Professional Analyst Ratings for MercadoLibre
In the last month, 1 experts released ratings on this stock with an average target price of $1500.0.
- In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $1500.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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