Deep-pocketed investors have adopted a bearish 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 8 extraordinary options activities for MercadoLibre. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 0% leaning bullish and 100% bearish. Among these notable options, 4 are puts, totaling $160,860, and 4 are calls, amounting to $246,050.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1500.0 to $1920.0 for MercadoLibre over the recent three months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for MercadoLibre's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of MercadoLibre's whale trades within a strike price range from $1500.0 to $1920.0 in the last 30 days.
MercadoLibre Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BEARISH | 03/15/24 | $1850.00 | $153.2K | 53 | 25 |
| MELI | PUT | SWEEP | BEARISH | 05/17/24 | $1560.00 | $51.7K | 21 | 8 |
| MELI | PUT | TRADE | NEUTRAL | 07/19/24 | $1570.00 | $44.1K | 1 | 5 |
| MELI | CALL | SWEEP | BEARISH | 03/08/24 | $1800.00 | $39.7K | 0 | 0 |
| MELI | PUT | TRADE | BEARISH | 03/01/24 | $1750.00 | $39.5K | 11 | 5 |
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.
Following our analysis of the options activities associated with MercadoLibre, we pivot to a closer look at the company's own performance.
Where Is MercadoLibre Standing Right Now?
- Trading volume stands at 115,788, with MELI's price down by -0.87%, positioned at $1762.0.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 23 days.
Expert Opinions on MercadoLibre
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $1900.0.
- Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for MercadoLibre, targeting a price of $1900.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest MercadoLibre options trades with real-time alerts from Benzinga Pro.
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