Meta (META) Options Signal Bullish Bias: Calls at $700 Dominate as AI Glasses Update Fuels Optimism

• Current price: $653.50, up 0.93% from open, trading near 30-day support at $646.45.
• Options market skewed bullish: Call open interest (1.9M) outpaces puts (1.15M), with $700 calls leading this Friday’s OI.
• Block trades hint at big money: A $770 call block (expiring Jan 2026) and recent sell-offs in November $780/$800 calls suggest strategic positioning.

Here’s the takeaway: Meta’s options market is leaning hard into a bullish narrative, with heavy call buying at $700 strikes and fading puts below $600. Technicals aren’t screaming breakout yet, but the setup feels like a coiled spring—especially with the AI glasses update fueling near-term hype. Let’s break it down.

Bullish Calls at $700 vs. Bearish Puts at $600: What’s the Play?

This Friday’s options chain tells a story. The $700 call (OI: 18,724) is the most watched strike, with next Friday’s $720 call (OI: 6,616) reinforcing the bullish bias. Meanwhile, puts at $600 (OI: 17,265) and $620 (OI: 12,263) show some downside hedging, but the put/call ratio of 0.60 means bears aren’t in charge here.

Block trades add intrigue. The largest, a $770 call block (META20260116C770) with $2.37M turnover, suggests big players are eyeing a January 2026 rally. Meanwhile, November $780 and $800 call sell-offs (META20251121C780, META20251121C800) hint at profit-taking or position adjustments. The message? Bulls are stacking up for a push above $700, but caution lingers below $630.

AI Glasses and Ad Scandals: Which News Matters More?

Meta’s AI glasses update (Conversation Focus + Spotify integration) is a product win, likely to boost near-term sentiment. The Messenger desktop shutdown is a minor annoyance for users but aligns with Meta’s ecosystem consolidation—a move investors have seen before. The real wildcard is the Chinese ad fraud scandal. While $18B in 2024 revenue sounds huge, the 16-19% fraud rate is a reputational hit. However, the stock’s price action suggests this might already be priced in—volume is steady, and RSI at 63 isn’t extreme. For now, the AI optimism outweighs the fraud concerns, but keep an eye on regulatory headlines.

Actionable Trades: Calls, Puts, and Price Levels

For options:

• Bullish Play: Buy the META20251226C700 call (expiring Dec 26). If META breaks above today’s high of $654.6, this strike could catch momentum. Target: $700–$750.
• Bearish Hedge: Buy the META20251226P630 put if price dips to 200-day support ($646.45–$648.14). Stop loss below $630.

For stock:

• Entry near $646.45 (30-day support) if RSI holds above 50. Target: $687.65 (Bollinger Upper Band).
• Exit above $670 if MACD crosses above signal line (currently -0.47 vs -4.35).

Volatility on the Horizon: Balancing Optimism and Caution

Meta’s chart is a tightrope walk. The long-term 200D MA at $671.01 acts as a ceiling, while the 100D MA ($709.45) is a distant target. Short-term, the key is whether $654.6 (today’s high) holds—it’s a psychological level and a potential springboard for a push toward $700. If the AI hype fades or Chinese regulators escalate pressure, the $630–$600 range will be critical. For now, the options market is betting on a bullish breakout, but don’t ignore the puts—they’re there for a reason.