Decoding MercadoLibre's Options Activity: What's the Big Picture?

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 16 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 43% bullish and 31%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $317,178, and 9 are calls, for a total amount of $1,672,271.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $1380.0 to $1960.0 for MercadoLibre during the past quarter.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of MercadoLibre stands at 140.93, with a total volume reaching 89.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in MercadoLibre, situated within the strike price corridor from $1380.0 to $1960.0, throughout the last 30 days.

MercadoLibre Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
MELI CALL SWEEP BULLISH 01/17/25 $190.0 $188.4 $190.0 $1600.00 $1.1M 552 2
MELI CALL TRADE NEUTRAL 08/16/24 $94.1 $89.4 $91.38 $1610.00 $182.7K 23 0
MELI CALL TRADE BEARISH 01/17/25 $216.6 $208.7 $210.0 $1560.00 $105.0K 8 0
MELI PUT TRADE BULLISH 12/20/24 $101.0 $95.7 $96.0 $1500.00 $96.0K 10 0
MELI CALL TRADE BEARISH 06/28/24 $58.8 $55.1 $55.1 $1550.00 $55.1K 15 1

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.

Current Position of MercadoLibre

  • With a trading volume of 200,181, the price of MELI is up by 0.26%, reaching $1589.21.
  • Current RSI values indicate that the stock is may be approaching oversold.
  • Next earnings report is scheduled for 40 days from now.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for MercadoLibre, Benzinga Pro gives you real-time options trades alerts.

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...