Smart Money Is Betting Big In MELI Options

Investors with a lot of money to spend have taken a bullish 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 19 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 31%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $359,927, and 13 are calls, for a total amount of $790,634.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $1000.0 and $1960.0 for MercadoLibre, spanning the last three months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for MercadoLibre options trades today is 57.13 with a total volume of 85.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for MercadoLibre's big money trades within a strike price range of $1000.0 to $1960.0 over the last 30 days.

MercadoLibre Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
MELI CALL TRADE BULLISH 05/10/24 $40.0 $33.4 $40.0 $1650.00 $200.0K 97 3
MELI PUT TRADE BULLISH 12/20/24 $173.7 $165.8 $168.8 $1700.00 $168.8K 6 11
MELI CALL TRADE BULLISH 05/17/24 $237.6 $223.9 $235.0 $1450.00 $117.5K 31 5
MELI PUT TRADE BULLISH 09/20/24 $159.4 $156.0 $156.0 $1750.00 $78.0K 20 0
MELI CALL TRADE BEARISH 01/17/25 $748.9 $745.0 $745.0 $1000.00 $74.5K 34 0

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.

In light of the recent options history for MercadoLibre, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of MercadoLibre

  • Trading volume stands at 81,527, with MELI's price up by 2.19%, positioned at $1690.15.
  • RSI indicators show the stock to be may be approaching overbought.
  • Earnings announcement expected in 85 days.

What The Experts Say On MercadoLibre

In the last month, 3 experts released ratings on this stock with an average target price of $1800.0.

  • Maintaining their stance, an analyst from Wedbush continues to hold a Outperform rating for MercadoLibre, targeting a price of $1800.
  • An analyst from UBS has decided to maintain their Buy rating on MercadoLibre, which currently sits at a price target of $1800.
  • An analyst from Wedbush downgraded its action to Outperform with 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.

Market News and Data brought to you by Benzinga APIs
Date of Trade
Strike Price
Posted In: OptionsMarketsBZI-UOA
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