Investors with a lot of money to spend have taken a bullish stance on MercadoLibre (NASDAQ: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 8 uncommon options trades for MercadoLibre.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 25%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $89,540, and 6 are calls, for a total amount of $363,548.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $1520.0 to $1690.0 for MercadoLibre over the last 3 months.
Insights into 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 $1520.0 to $1690.0 in the last 30 days.
MercadoLibre Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI | CALL | SWEEP | NEUTRAL | 09/20/24 | $120.9 | $108.2 | $114.55 | $1690.00 | $117.5K | 23 | 0 |
| MELI | CALL | SWEEP | BULLISH | 09/20/24 | $198.1 | $184.3 | $189.9 | $1550.00 | $94.9K | 28 | 5 |
| MELI | PUT | TRADE | NEUTRAL | 01/17/25 | $133.6 | $120.1 | $127.1 | $1640.00 | $50.8K | 23 | 3 |
| MELI | CALL | TRADE | NEUTRAL | 07/26/24 | $49.0 | $40.0 | $43.97 | $1655.00 | $43.9K | 20 | 0 |
| MELI | CALL | TRADE | BULLISH | 09/20/24 | $202.4 | $197.4 | $202.45 | $1550.00 | $40.4K | 28 | 7 |
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.
In light of the recent options history for MercadoLibre, it's now appropriate to focus on the company itself. We aim to explore its current performance.
MercadoLibre's Current Market Status
- With a trading volume of 9,348, the price of MELI is up by 0.45%, reaching $1694.95.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 13 days from now.
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.
