What Are Whales Doing With MercadoLibre

What Are Whales Doing With MercadoLibre

 

Someone with a lot of money to spend has taken a bearish stance on MercadoLibre MELI.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, 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 this whale 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 25% bullish and 75%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $376,750, and 8 are calls, for a total amount of $284,240.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $760.0 to $1170.0 for MercadoLibre over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for MercadoLibre options trades today is 106.92 with a total volume of 43.00.

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 $760.0 to $1170.0 over the last 30 days.

MercadoLibre Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

 

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
MELI PUT TRADE BEARISH 01/20/23 $1150.00 $182.8K 82 8
MELI PUT TRADE BEARISH 01/20/23 $1160.00 $94.0K 229 4
MELI PUT TRADE BEARISH 01/20/23 $1170.00 $72.1K 32 3
MELI CALL TRADE BEARISH 10/21/22 $1050.00 $47.5K 152 0
MELI CALL TRADE BULLISH 08/19/22 $900.00 $40.9K 409 3

Where Is MercadoLibre Standing Right Now?

  • With a volume of 75,366, the price of MELI is down -3.91% at $1012.5.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 78 days.

What The Experts Say On MercadoLibre:

  • JP Morgan has decided to maintain their Overweight rating on MercadoLibre, which currently sits at a price target of $1350.
  • Credit Suisse has decided to maintain their Outperform rating on MercadoLibre, which currently sits at a price target of $1430.
  • Barclays has decided to maintain their Overweight rating on MercadoLibre, which currently sits at a price target of $1250.
  • Credit Suisse has decided to maintain their Outperform rating on MercadoLibre, which currently sits at a price target of $1470.

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.

Posted In: BZI-UOAOptionsMarkets