MercadoLibre Unusual Options Activity For June 26

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 12 uncommon options trades for MercadoLibre.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 16%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $425,091, and 5 are calls, for a total amount of $1,209,870.

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 $1000.0 to $3800.0 for MercadoLibre during the past quarter.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

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 activity within a strike price range from $1000.0 to $3800.0 in the last 30 days.

MercadoLibre 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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

• Trading volume stands at 218,329, with MELI's price up by 0.37%, positioned at $2550.0.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 35 days.

What Analysts Are Saying About MercadoLibre

In the last month, 3 experts released ratings on this stock with an average target price of $2825.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Consistent in their evaluation, an analyst from Cantor Fitzgerald keeps a Overweight rating on MercadoLibre with a target price of $2700. * Reflecting concerns, an analyst from Jefferies lowers its rating to Hold with a new price target of $2800. * An analyst from Susquehanna persists with their Positive rating on MercadoLibre, maintaining a target price of $2975.

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.