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Put Spread on MELI on 9/21/2015

Broken Support on MELIMercadoLibre, Inc. (MELI) hosts online commerce platforms in Latin America.

It offers MercadoLibre Marketplace, an automated online e-commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format.

The company’s MercadoLibre marketplace enables commerce through online classifieds for motor vehicles, vessels, aircraft, services, and real estate; and Internet users to browse through various products that are listed on its Website and to register with MercadoLibre to list, bid for, and purchase items and services.

It also provides MercadoLibre Classifieds solution for users to list their offerings related to vehicles, real estate, and services outside the marketplace platform; and MercadoPago, an integrated online payments solution to facilitate transactions on and off the MercadoLibre marketplace by providing a mechanism that allows its users to send, receive, and finance payments online. In addition, the company offers MercadoClics program that allows retailers, small and medium brands, and various consumer brands to promote their products and services on the Internet; and enables users and advertisers to place display and text advertisements on its Website to promote their brands and offerings.

Further, it provides MercadoShops on-line stores, a software-as-a-service, which allows users to set-up, manage, and promote their own online Webstores; and MercadoEnvios, a shipping solution for marketplace users. As of December 31, 2014, the company operated online commerce platforms directed towards Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Panama, Peru, Portugal, Uruguay, and Venezuela; and a real estate classified platform that covers various areas in Florida. 

Shares have fallen through a broken support, lower share prices are expected for this stock.

 

52-Weeks Trading Range: $97.92 - $153.42

Last Trade: $100.00

Trade

  • Buy 1 October $100.00 Put at $4.60
  • Sell 1 October $95.00 Put at $2.45
  • For a net debit of $2.15

Profit/Loss Analysis

  • Breakeven at $97.85
  • Maximum profit is $285.00 at strike of $95.00
  • Maximum loss is ($215.00) at strike of $100.00

Closing Summary

  • Sold 1 October $100.00 Put at $7.20
  • Bought 1 October $95.00 Put at $3.85

Position closed on 9/23/2015 at price of $3.35 with a 55.81% gain in 2 days.

Updates

9/23/2015 12:11:15 PM

We are taking profits on MELI Put Spread. Closed at $3.50.

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