Meta (META) Options Signal Bullish Bias: 700-Call OI Surge and Whale Moves Point to 40% Upside Potential

• Meta’s price surged 1.06% to $650.52, trading above its 30D MA but below the 200D MA.
• Options data shows heavy call open interest at $700 and $1000 strikes, with a put/call ratio of 0.6 (bullish skew).
• Block trades suggest institutional hedging or profit-taking, while news of a $900 price target fuels optimism.

Here’s the takeaway: Meta’s options market is pricing in a strong bullish bias, with heavy call buying at key strikes and technicals hinting at a potential breakout. But short-term risks linger—let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options market is a goldmine for reading crowd psychology. Right now, calls at the $700 strike dominate open interest (18,887 contracts this Friday, 10,208 next Friday), while puts cluster at $600 (17,274 OI). This isn’t random—it’s a signal. Traders are betting Meta could rally toward $700+ by January, but they’re also hedging downside risks near $600.

The put/call ratio of 0.6 (based on open interest) tells us calls are outpacing puts by 60%. That’s a classic bullish setup. But don’t ignore the red flags: block trades like META20260116C770 (sold for $2.37M) suggest big players are locking in profits or hedging long-term bets. Think of it like a captain securing cargo before a storm—there’s confidence, but caution.

How News Shapes the Narrative

Meta’s story isn’t just numbers—it’s about trust. The recent $900 price target from Citizens (40% upside) is a big deal, especially with 2026 product updates on the horizon. But the scam-ad scandal and regulatory risks are real. Here’s the tension: investors love Meta’s revenue growth and AI bets, but they’re wary of near-term profit pressures.

This duality shows up in options. The $700 call frenzy reflects belief in long-term optimism, while the $600 put pile acts as insurance against short-term stumbles. It’s like buying a life jacket for a high-stakes swim—excitement and fear are both at play.

Actionable Trade Ideas for Today

For options traders, the most compelling setup is the META20251226C700 call (expiring Dec 26). Why? The $700 strike is a psychological level with heavy open interest, and Meta’s price is already testing Bollinger Bands resistance at $686. If the stock breaks above $651 (intraday high), this call could gain steam.

For stock traders, consider these levels:

• Entry: Buy near $640 (support between 589–632) if Meta holds above its 30D MA of $630.50.
• Target: Aim for $686 (Bollinger Upper Band) if the 200D MA (671) is cleared.
• Stop: Exit below $632 to avoid a breakdown into lower support.

Bearish players might eye META20251226P630 puts as a hedge, given the 4,745 OI at that strike. But with RSI at 66.9 (overbought) and MACD trending upward, a short-term pullback could be a buying opportunity.

Volatility on the Horizon

Meta’s options and fundamentals are pointing in the same direction: upside potential with caution. The $900 price target is a siren song, but the path there isn’t smooth. Watch for a breakout above $686 or a breakdown below $632—either could trigger a wave of options activity. For now, the 700-call frenzy and whale moves suggest the crowd is pricing in a 2026 rally… but December could still throw curveballs.