Meta (META) Options Signal Bullish Bias: Focus on $700 Calls as AI Ambitions Fuel Volatility – Here’s How to Position

• META trades at $658.31, down 1.27% amid a short-term bullish trend but long-term consolidation.
• Call open interest dominates (put/call ratio: 0.57), with heavy demand for $700 and $1000 calls expiring Dec 19.
• Block trades show large call sales at $780 and $800, hinting at strategic hedging or profit-taking.
• Meta’s AI pivot, EU regulatory risks, and analyst upgrades create a high-stakes backdrop for traders.

Here’s the takeaway: Meta’s options market is leaning bullish, with heavy call open interest and block trades pointing to a potential breakout above key resistance. But regulatory headwinds and a crowded $700+ call wall mean caution is still warranted. Let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options data tells a story of cautious optimism. For this Friday’s expirations, the top call open interest sits at $690 ($OI: 12,928) and $700 ($OI: 8,547), while next Friday’s chain sees even heavier demand at $700 ($OI: 18,829) and $1000 ($OI: 15,054). This suggests a battle for control above $690, where bulls would need to push through to validate the 30D moving average at $641 and the 200D range at $747–$753.

On the downside, puts are less crowded but still notable: $600 ($OI: 4,274) and $650 ($OI: 3,064) act as short-term floors. The block trades—like the 400-lot sale of META20260116C770—hint at institutional players hedging long-term AI bets. Meanwhile, the 5,798-lot call sale at $840 (expiring Sept 19) suggests some profit-taking from earlier speculative positions.

How Meta’s AI News Shapes the Narrative

Meta’s pivot to proprietary AI—codenamed Avocado—and its $14.3B investment in talent like Alexandr Wang signal a high-stakes gamble. Analysts upgrading the stock to Buy ($718–$810 targets) back this narrative, but the EU’s antitrust probe over WhatsApp AI features adds friction. The 3% stake in EssilorLuxottica for AI glasses is a strategic move, but hardware bets are notoriously capital-intensive. Traders are betting on the AI hype, but execution risks linger.

Actionable Trade Ideas for Today

1. Options Play: Buy META20251219C700 calls if price breaks above the intraday high of $664.48. Why? The $700 strike has the highest open interest for next Friday, and a close above $664 would test the 30D MA and Bollinger Upper Band ($677.77). Target: $700+ if the 200D MA ($671) holds. Stop-loss: Below $653.34 intraday low.

1. Stock Play: Consider entries near $611.90 (30D support) if price dips to test the 608–611 range. A rebound here could rekindle the short-term bullish trend. For downside protection, buy META20251219P650 puts if the 200D MA breaks.

1. Advanced Play: Sell covered calls against long META positions at $700 (Dec 19) to capitalize on the crowded strike. If Avocado news in Q1 2026 sparks a rally, these calls could generate premium while capping upside.

Volatility on the Horizon

Meta’s options market is pricing in a volatile finish. The $700 call wall and regulatory risks create a tug-of-war: bulls need a clean break above $677.77 to trigger a rally, while bears could short the 600–650 put range if AI hype falters. With AI adoption rates and EU probes looming, Dec 19 options will be a litmus test for sentiment. Stay nimble—this stock isn’t going to trade in a straight line, but the setup offers clear entry points for both sides of the trade.