thetaOwl

MELI

MercadoLibre, Inc.Close $1651.20EOD only
Max Pain
$1600.00
Next expiry May 22, 2026
Expected Move
±$45.60
2.8% from close
Price Gap
-51.20
Distance to max pain
IV Rank
2
Low premium
P/C OI
0.87
Slightly call-heavy
Consensus
4/4
Partial coverage
Published snapshot: May 20, 2026 close
End-of-day snapshot

This page reflects MELI options positioning from the latest published market-close snapshot. Intraday price and contract changes are not displayed.

Published Snapshot
May 20, 2026 close
MELI Earnings Report
Analysis based on market close March 31, 2026

Historical consensus-supported lens with full content, report chain context, and metric rail.

Earnings Verdict

Earnings expected around 5/07 (TBD). IV is elevated (57%), with a sharp term structure kink at 5/08 expiration (48.4% vs 41.8% pre). The expected move for the 5/08 cycle is ±7.5% ($130.15). The best strategy is selling premium via an iron condor, given the elevated IV and pinning gamma regime. Key risk is a large gap beyond the expected move, amplified by the gamma flip level at ~$1620.

Confidence:
6.5 / 10
base 5; +1 clear IV kink at 5/08; +0.5 elevated IV; -0.0 no explicit earnings date
Most important: IV term structure shows a clear kink at the 5/08 expiration (38 days out), strongly implying earnings are scheduled for that week, likely 5/07.
⚠️Earnings date is inferred from IV term structure kink at 5/08. Await official confirmation.
📉Historical EPS: 3 consecutive misses. Sets a low bar but creates negative sentiment momentum.
⚖️Spot ($1729) is 4.8% above nearest max pain ($1650). Gravity may pull price lower into nearer-term expirations.

Regime Classification

Vol Regime
High (IV 57%)
Gamma Regime
Pinning (GEX +$0.2M — mean-reverting)
Flow Regime
Mixed (net prem $-14.4M, P/C 1.04)
Spot vs MP
Above max pain by 4.8% (spot $1729.02 vs MP $1650)
Gamma flip: ~$1620.00Below ~$1620, negative gamma from put OI concentration could amplify downward moves.

Earnings Overview

Next earnings: 2026-05-07 (37 days)inferred

Expected moves:

  • 5/08 (38d): ±$130.15 (7.5%)

IV Setup

Term structure: Sharp kink at 5/08 (38d) expiration: 48.4% vs 41.8% (5/01) and 41.3% (4/10). Elevated IV persists through 5/15 (52.3%).

Crush estimate: ~15-20 vol pts post-earnings, back to ~32-35% range.

Skew: Mixed flow; large net premium outflows to puts at $2120, $2020, $1980 suggest institutional hedging.

Historical Context

Beat rate: 25% (1/4 quarters)

Avg move vs expected: Insufficient price history provided to calculate.

Directional bias: Recent trend of EPS misses (3 consecutive quarters).

Key Levels

1~$1620 gamma flip / put OI wall
2$1650 max pain (nearest)
3$1700 (4/10 MP)
4$1760 (4/17 MP)
5EM Bounds: $1600 - $1860 (5/08)

Flow Highlights

Massive $2120 Put flow: Net $-18M premium (sellers).

Likely institutional selling of OTM puts for premium, expressing a bullish or range-bound view.

Large $1320 Call flow: Net +$15.6M premium (buyers).

Significant long-dated call buying, potentially a bullish earnings or long-term growth bet.

Strategies

Iron Condor (Premium Sell)
Sell $1590/$1560 Put Spread x Buy $1860/$1890 Call Spread 5/08
Credit: $8.00-$12.00
Max loss: $22.00
Max gain: $10.00
BE: Downside: $1582, Upside: $1868
Trigger: Enter 5-7 days before suspected earnings (late April).
Elevated IV at the 5/08 expiry provides rich premium to sell. Structure is placed just outside the expected move to capture IV crush while defining risk. Aligns with pinning gamma regime.
Outperforms: Stock stays within the 7.5% expected move bounds ($1600-$1860). IV crush provides theta decay.
Underperforms: Stock gaps beyond short strikes by >$30. High pin risk near $1620 could challenge the put side.
Strangle (Premium Sell)
Sell $1590 Put & Sell $1860 Call 5/08
Credit: $25.00-$35.00
Max loss: Unlimited
Max gain: $30.00
BE: Downside: $1565, Upside: $1885
Trigger: Enter 3-5 days before earnings if IV > 45%.
More aggressive premium capture from high IV. Wider breakevens than the condor provide a larger profitable range, suitable if you believe the expected move is overstated.
Outperforms: Stock stays within a ~10% range. Maximizes IV crush and theta decay.
Underperforms: Large directional gap >10%. Requires closer management than an iron condor.
Long Put Vertical (Directional Bearish)
Buy $1720 Put / Sell $1670 Put 5/08
Max loss: $50.00
Max gain: $50.00
BE: $1715
Trigger: Enter on weakness into earnings or if spot fails to hold $1730.
Targets the recent trend of EPS misses and the potential for a guidance letdown. Positioned near current spot to capitalize on a down move. The put skew and OI concentration at $1620 provide a potential target.
Outperforms: Stock declines post-earnings, especially below $1670. Benefits from volatility increase on downside move.
Underperforms: Stock rallies or pins above $1720. Suffers from IV crush if move is muted.

Risk Assessment

!Gap Risk: 7.5% expected move is significant (~$130). A surprise on guidance could cause a larger gap.
!IV Crush: High pre-earnings IV (48-52%) will collapse post-event, punishing long premium positions.
!Liquidity: OI and volume are sufficient for standard strikes, but wide bid-ask spreads may impact fills on complex spreads.
!Gamma/Pinning Risk: Spot is well above the gamma flip (~$1620), but a drop toward that level could trigger accelerated selling from dealers.

What to Watch

?Confirmation of exact earnings date (likely 5/07).
?IV trajectory in the 5/08 and 5/15 expirations as event nears.
?Spot price action relative to the $1700-$1760 max pain zone for nearer expirations.
?Unusual flow in weekly options that may appear closer to the event.
How to Use These Reports
This earnings reflects the market close on March 31, 2026.
What the reports do

Each report translates the same market-close options snapshot into a specific lens such as directional bias, premium-selling posture, flow quality, or earnings setup.

How traders use them

Reports are most useful for narrowing the playbook, surfacing entry and risk context, and deciding which raw data page to inspect next.

What to remember

These are interpretation layers, not execution guarantees. Validate the setup against chain liquidity, expected move, and exposure before sizing risk.

If the report conviction and the raw data disagree, slow down and resolve the mismatch before sizing risk.