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 37 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 24% bullish and 45%, bearish.
Out of all of the special options we uncovered, 14 are puts, for a total amount of $501,743, and 23 are calls, for a total amount of $1,252,521.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1360.0 to $2300.0 for MercadoLibre over the recent three months.
Volume & Open Interest Development
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 $1360.0 to $2300.0 in the last 30 days.
MercadoLibre Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BEARISH | 09/06/24 | $16.8 | $13.4 | $13.4 | $1990.00 | $116.5K | 20 | 113 |
| MELI | CALL | TRADE | NEUTRAL | 10/25/24 | $169.6 | $155.9 | $162.5 | $1870.00 | $97.5K | 0 | 32 |
| MELI | CALL | TRADE | NEUTRAL | 01/16/26 | $426.0 | $408.1 | $415.42 | $1940.00 | $83.0K | 4 | 2 |
| MELI | CALL | TRADE | BEARISH | 10/25/24 | $170.0 | $159.6 | $159.6 | $1910.00 | $79.8K | 0 | 1 |
| MELI | CALL | SWEEP | BULLISH | 09/20/24 | $158.9 | $147.5 | $158.9 | $1880.00 | $79.4K | 51 | 1 |
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.
After a thorough review of the options trading surrounding MercadoLibre, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
MercadoLibre's Current Market Status
- With a volume of 128,840, the price of MELI is down -2.92% at $1978.62.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 54 days.
What The Experts Say On MercadoLibre
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $2382.0.
- An analyst from Cantor Fitzgerald has revised its rating downward to Overweight, adjusting the price target to $2530.
- An analyst from BTIG persists with their Buy rating on MercadoLibre, maintaining a target price of $2250.
- Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for MercadoLibre, targeting a price of $2300.
- Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on MercadoLibre with a target price of $2480.
- An analyst from Susquehanna has decided to maintain their Positive rating on MercadoLibre, which currently sits at a price target of $2350.
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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