27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Investors with a lot of money to spend have taken a bullish 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 11 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 63% bullish and 36%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $206,250, and 6 are calls, for a total amount of $355,260.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $940.0 to $1580.0 for MercadoLibre over the recent three months.
Volume & Open Interest Trends
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 $940.0 to $1580.0 in the last 30 days.
MercadoLibre Option Activity Analysis: Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BULLISH | 01/19/24 | $1580.00 | $190.0K | 16 | 0 |
| MELI | PUT | TRADE | BULLISH | 01/17/25 | $940.00 | $57.6K | 220 | 0 |
| MELI | PUT | TRADE | BEARISH | 12/15/23 | $1380.00 | $47.8K | 15 | 11 |
| MELI | PUT | TRADE | NEUTRAL | 01/16/26 | $1300.00 | $46.0K | 3 | 2 |
| MELI | CALL | TRADE | BEARISH | 01/19/24 | $1000.00 | $39.7K | 178 | 0 |
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.
Having examined the options trading patterns of MercadoLibre, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Present Market Standing of MercadoLibre
- With a volume of 139,535, the price of MELI is down -0.46% at $1368.09.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 101 days.
Professional Analyst Ratings for MercadoLibre
1 market experts have recently issued ratings for this stock, with a consensus target price of $1500.0.
- Reflecting concerns, an analyst from Wedbush lowers its rating to Outperform with a new 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.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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