Spotlight on MercadoLibre: Analyzing the Surge in Options Activity

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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 28 extraordinary options activities for MercadoLibre. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 50% leaning bullish and 28% bearish. Among these notable options, 12 are puts, totaling $519,650, and 16 are calls, amounting to $715,469.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $1300.0 to $2640.0 for MercadoLibre during the past quarter.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of MercadoLibre stands at 73.94, with a total volume reaching 133.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in MercadoLibre, situated within the strike price corridor from $1300.0 to $2640.0, throughout the last 30 days.

MercadoLibre Option Activity Analysis: Last 30 Days

Options Call Chart

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 BULLISH 01/16/26 $333.0 $316.0 $326.5 $2000.00 $97.9K 465 3
MELI CALL TRADE BULLISH 12/18/26 $695.0 $694.1 $695.0 $1580.00 $69.5K 14 1
MELI PUT TRADE BULLISH 03/07/25 $675.7 $664.0 $664.0 $2640.00 $66.4K 0 1
MELI CALL TRADE NEUTRAL 02/21/25 $99.0 $90.1 $94.61 $2000.00 $66.2K 327 14
MELI PUT TRADE BEARISH 01/15/27 $660.0 $642.0 $652.8 $2500.00 $65.2K 6 2

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.

Following our analysis of the options activities associated with MercadoLibre, we pivot to a closer look at the company's own performance.

Current Position of MercadoLibre

  • With a volume of 89,987, the price of MELI is up 1.81% at $2011.0.
  • RSI indicators hint that the underlying stock may be overbought.
  • Next earnings are expected to be released in 14 days.

What Analysts Are Saying About MercadoLibre

In the last month, 2 experts released ratings on this stock with an average target price of $2100.0.

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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.

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