Looking At MercadoLibre's Recent Unusual Options Activity

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 30 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 23% bullish and 63%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $280,646, and 25 are calls, for a total amount of $6,713,738.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $1290.0 to $2600.0 for MercadoLibre during the past quarter.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for MercadoLibre's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across MercadoLibre's significant trades, within a strike price range of $1290.0 to $2600.0, over the past month.

MercadoLibre Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
MELI CALL TRADE BULLISH 06/17/27 $676.0 $656.0 $673.0 $2210.00 $4.9M 327 74
MELI CALL TRADE BEARISH 06/17/27 $677.9 $674.0 $674.0 $2200.00 $269.6K 5 0
MELI CALL SWEEP BULLISH 05/02/25 $74.8 $73.0 $74.8 $2260.00 $149.2K 31 24
MELI CALL TRADE BEARISH 06/17/27 $680.0 $674.0 $675.0 $2200.00 $135.0K 5 6
MELI CALL TRADE BEARISH 06/17/27 $680.0 $673.0 $674.0 $2200.00 $134.8K 5 8

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 when last reported. 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.

Following our analysis of the options activities associated with MercadoLibre, we pivot to a closer look at the company's own performance.

MercadoLibre's Current Market Status

  • With a volume of 179,168, the price of MELI is down -1.2% at $2302.99.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 12 days.

Professional Analyst Ratings for MercadoLibre

In the last month, 3 experts released ratings on this stock with an average target price of $2486.67.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * In a cautious move, an analyst from Benchmark downgraded its rating to Buy, setting a price target of $2500. * An analyst from Morgan Stanley persists with their Overweight rating on MercadoLibre, maintaining a target price of $2560. * An analyst from Cantor Fitzgerald persists with their Overweight rating on MercadoLibre, maintaining a target price of $2400.

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.

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MELIMercadoLibre Inc
$2301.49-1.26%

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