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 15 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 26% bullish and 73%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $231,200, and 10 are calls, for a total amount of $937,757.
Projected Price Targets
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1240.0 to $2000.0 for MercadoLibre over the recent three months.
Volume & Open Interest Development
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 $1240.0 to $2000.0 over the preceding 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 | BEARISH | 02/16/24 | $1740.00 | $184.4K | 38 | 205 |
| MELI | CALL | TRADE | NEUTRAL | 02/16/24 | $1740.00 | $181.1K | 38 | 103 |
| MELI | CALL | TRADE | NEUTRAL | 02/16/24 | $1740.00 | $179.9K | 38 | 53 |
| MELI | CALL | SWEEP | BEARISH | 02/16/24 | $1740.00 | $179.6K | 38 | 155 |
| MELI | PUT | TRADE | NEUTRAL | 01/17/25 | $1240.00 | $63.0K | 40 | 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.
MercadoLibre's Current Market Status
- Trading volume stands at 59,021, with MELI's price up by 0.04%, positioned at $1742.89.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 14 days.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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