Meta (META) Options Signal $700 Call Contention as $600 Puts Hedge Risk – Here’s How to Position for Volatility

• Meta’s price action today shows a 0.81% intraday gain, trading at $652.76 amid a short-term bearish trend and long-term range-bound pattern.
• Options data reveals heavy call open interest at the $700 strike (18,724 contracts) and put dominance at $600 (17,265 contracts), signaling a tug-of-war between bullish and bearish bets.
• Block trades like the sold META20251121C780 call ($2.37M turnover) hint at institutional caution, while AI and metaverse news could fuel near-term swings.

The Big Picture: Meta’s options market is polarized—bulls are eyeing a $700 breakout, while bears are hedging at $600. With RSI at 63 and Bollinger Bands stretched wide, the stock is primed for a directional move. But the news cycle? It’s a mixed bag. Let’s break it down.Bull vs. Bear: What the Options Are Saying

The options chain tells a story of conflicting narratives. For this Friday’s expiration, the $700 call (OI: 18,724) is the most watched strike, suggesting institutional players are pricing in a potential 7.3% pop from current levels. That’s not just noise—it’s a bet on Meta’s AI-driven ad tools or a rebound in metaverse sentiment. But don’t ignore the puts: the $600 strike (OI: 17,265) is a major support level, with open interest spiking as traders brace for a drop below the 200D MA ($671).

Block trades add intrigue. The recent sale of 300 contracts at META20251121C780 (strike price $780) for $1.23M suggests large players are offloading bullish exposure, possibly locking in profits after Meta’s 466% three-year rally. Meanwhile, the META20260116C770 block trade ($2.37M) hints at long-term conviction—if the stock holds above $650, this could signal a base for a 2026 push.

News That Could Tip the Scales

Meta’s ad fraud scandal in China is a double-edged sword. On one hand, the 16% of China revenue tied to scams could invite regulatory scrutiny, weighing on the stock. On the other, the company’s pivot to AI infrastructure and expanded Reels tools might offset that risk. The recent Disney+ launch on Meta Quest is a positive tailwind for Reality Labs, but the CTO’s "VR isn’t dead" line feels more like damage control than a rally cry.

Here’s the kicker: investors are pricing in growth but hedging against scandal. The put/call ratio of 0.60 (calls dominate) reflects this duality—traders are bullish on the stock’s long-term AI narrative but wary of near-term volatility from earnings or lawsuits.

Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the $700 call (META20251219C700) is a high-conviction play if Meta closes above its intraday high of $654.24. With 3 days to expiration, a break above $655 could trigger a gamma squeeze, especially with 18,724 contracts in play. For downside protection, the $600 put (META20251219P600) offers a floor if the stock retests its 30D support zone ($646.45–$648.14).

Stock traders should watch these levels:

• Entry: Consider buying near $648 if the 30D support holds, with a stop just below $643.
• Target: A breakout above $654.24 could aim for the Bollinger Upper Band at $687.65, but watch for fading momentum if RSI crosses 70.

Volatility on the Horizon

Meta’s options market is a chessboard. Bulls need a clean break above $655 to validate the $700 call thesis, while bears will pounce on a close below $643 to accelerate the $600 put scenario. The coming days will test whether Meta’s AI optimism can outpace its China-related risks. For now, the stock is dancing on a tightrope—straddle the $650 pivot, and you might ride the next move, whatever it brings.