Deep-pocketed investors have adopted a bearish approach towards MercadoLibre (NASDAQ:MELI), and it’s something market players shouldn’t ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in MELI usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga’s options scanner highlighted 8 extraordinary options activities for MercadoLibre. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 0% leaning bullish and 100% bearish. Among these notable options, 4 are puts, totaling $160,860, and 4 are calls, amounting to $246,050.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $1500.0 to $1920.0 for MercadoLibre over the recent three months.
Analyzing Volume & Open Interest
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 $1500.0 to $1920.0 in the last 30 days.
MercadoLibre Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BEARISH | 03/15/24 | $1850.00 | $153.2K | 53 | 25 |
| MELI | PUT | SWEEP | BEARISH | 05/17/24 | $1560.00 | $51.7K | 21 | 8 |
| MELI | PUT | TRADE | NEUTRAL | 07/19/24 | $1570.00 | $44.1K | 1 | 5 |
| MELI | CALL | SWEEP | BEARISH | 03/08/24 | $1800.00 | $39.7K | 0 | 0 |
| MELI | PUT | TRADE | BEARISH | 03/01/24 | $1750.00 | $39.5K | 11 | 5 |
About MercadoLibre
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 148 million active users and 1 million active sellers as of the end of 2022 across an 18-country footprint. The company also operates a host of complementary businesses, 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.
Where Is MercadoLibre Standing Right Now?
- Trading volume stands at 115,788, with MELI’s price down by -0.87%, positioned at $1762.0.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 23 days.
Expert Opinions on MercadoLibre
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $1900.0.
- Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for MercadoLibre, targeting a price of $1900.
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.
