MercadoLibre's Options Frenzy: What You Need to Know

MercadoLibre, Inc. -1.27% Pre

MercadoLibre, Inc.





0.00% Pre

Investors with a lot of money to spend have taken a bearish stance on MercadoLibre (NASDAQ: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 19 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.

Out of all of the special options we uncovered, 9 are puts, for a total amount of $383,510, and 10 are calls, for a total amount of $533,552.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1300.0 to $2100.0 for MercadoLibre over the recent three months.

Insights into Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in MercadoLibre's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to MercadoLibre's substantial trades, within a strike price spectrum from $1300.0 to $2100.0 over the preceding 30 days.

MercadoLibre Option Volume And Open Interest Over Last 30 Days

Options Call Chart

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
MELI CALL SWEEP BULLISH 05/17/24 $1680.00 $149.7K 7 12
MELI CALL SWEEP BULLISH 06/21/24 $1900.00 $84.0K 44 12
MELI CALL TRADE BEARISH 01/17/25 $2000.00 $67.5K 60 5
MELI PUT TRADE BEARISH 01/16/26 $2100.00 $60.2K 0 1
MELI PUT TRADE BEARISH 03/15/24 $1620.00 $57.9K 26 10

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.

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.

Present Market Standing of MercadoLibre

  • Trading volume stands at 86,601, with MELI's price down by -0.04%, positioned at $1590.31.
  • RSI indicators show the stock to be is currently neutral between overbought and oversold.
  • Earnings announcement expected in 56 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 $1800.0.

  • An analyst from Wedbush has decided to maintain their Outperform rating on MercadoLibre, which currently sits at a price target of $1800.

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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