A Closer Look at MercadoLibre's Options Market Dynamics

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 9 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 77% bullish and 22%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $345,446, and 5 are calls, for a total amount of $537,769.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $1020.0 to $1680.0 for MercadoLibre during the past quarter.

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 $1020.0 to $1680.0 in 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 12/20/24 $501.4 $489.2 $497.3 $1260.00 $348.1K 7 7
MELI PUT SWEEP BULLISH 06/20/25 $150.0 $135.0 $135.1 $1500.00 $108.0K 45 8
MELI PUT TRADE BULLISH 09/20/24 $120.6 $112.9 $115.68 $1680.00 $80.9K 16 7
MELI PUT SWEEP BULLISH 07/19/24 $42.2 $39.6 $39.5 $1600.00 $79.0K 63 20
MELI PUT SWEEP BULLISH 12/20/24 $57.5 $47.0 $50.81 $1380.00 $77.4K 0 16

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 75,711, with MELI's price down by -0.84%, positioned at $1679.77.
  • RSI indicators show the stock to be may be overbought.
  • Earnings announcement expected in 79 days.

Professional Analyst Ratings for MercadoLibre

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1800.0.

  • In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $1800.
  • An analyst from UBS has decided to maintain their Buy rating on MercadoLibre, which currently sits at a price target of $1800.
  • Consistent in their evaluation, an analyst from Wedbush keeps a Outperform rating on MercadoLibre with a target price of $1800.

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.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: OptionsMarketsBZI-UOA
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...