MercadoLibre Options Trading: A Deep Dive into Market Sentiment
High-rolling investors have positioned themselves bearish on MercadoLibre (NASDAQ:MELI), and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in MELI often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 12 options trades for MercadoLibre. This is not a typical pattern.
The sentiment among these major traders is split, with 33% bullish and 41% bearish. Among all the options we identified, there was one put, amounting to $26,692, and 11 calls, totaling $854,180.
Predicted Price Range
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $1380.0 to $1980.0 for MercadoLibre over the last 3 months.
Volume & Open Interest Trends
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 $1380.0 to $1980.0, over the past month.
MercadoLibre Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MELI | CALL | TRADE | BEARISH | 10/18/24 | $397.7 | $384.3 | $389.1 | $1380.00 | $389.1K | 0 | 0 |
| MELI | CALL | TRADE | BEARISH | 08/02/24 | $97.0 | $88.2 | $91.0 | $1700.00 | $91.0K | 30 | 3 |
| MELI | CALL | TRADE | BULLISH | 07/26/24 | $50.0 | $45.0 | $50.0 | $1720.00 | $60.0K | 5 | 0 |
| MELI | CALL | SWEEP | BEARISH | 07/12/24 | $62.0 | $52.0 | $54.93 | $1670.00 | $55.4K | 64 | 0 |
| MELI | CALL | TRADE | NEUTRAL | 08/16/24 | $257.0 | $242.5 | $250.0 | $1500.00 | $50.0K | 8 | 0 |
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.
Present Market Standing of MercadoLibre
- Currently trading with a volume of 14,103, the MELI's price is up by 0.63%, now at $1732.98.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 21 days.
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.