Meta (META) Options Signal Bullish Bias: Key $700 Call OI and RSI Divergence Point to Strategic Entry Zones

• META trades at $647.20, down 0.9% from $653.06, with intraday lows near $646.66
• Call open interest spikes at $700 strike (34,995 contracts) for Friday expiry, while puts cluster at $600–$620
• RSI at 42.69 hints oversold conditions, but MACD histogram (-1.4) warns of fading momentum

Here’s what the data tells us: Meta’s options market is pricing in a bullish bias, with heavy call buying at $700 and a put/call ratio of 0.607 (calls dominate). But the technicals aren’t screaming "buy the dip"—they’re whispering "wait for a catalyst." Let’s break it down.

Bullish OI at $700 vs. Defensive Puts at $600

The options chain tells a story of cautious optimism. For this Friday’s expiry, META20260116C700 calls lead with 34,995 open contracts—nearly double the next strike. That’s the kind of volume that often precedes a breakout. But here’s the catch: the $700 strike is 6% above current price. If META fails to pierce the 200D MA ($674.83) before Friday, those calls could expire worthless.

On the put side, the $600 strike (14,341 OI) acts like a floor. Traders are hedging against a drop to the lower Bollinger Band ($642.37). The lack of block trades (no whale moves today) means this is retail and institutional money fighting it out—no clear winner yet.

Dina Powell’s Hire: Strategic or Symbolic?

Meta’s new President, Dina Powell McCormick, brings Wall Street and Washington clout. Her focus on AI infrastructure and $600B in data center spending is bullish for long-term growth—but markets care more about execution. The options data suggests investors are betting Powell can deliver, but the RSI at 42.69 shows the stock hasn’t fully priced in her appointment yet. If the Louisiana data center project gets greenlit in Q1 2026, watch for a gap-up.

Trade Ideas: Calls for Aggressives, Bollinger Bounce for Cautious

For options traders: META20260116C700 is the most liquid high-strike call. If META closes above $674.83 (200D MA) by Friday, this could pay off. For next Friday, META20260123C680 offers a tighter risk-reward if the stock consolidates near the middle Bollinger Band ($656.70).

Stock traders: Consider entries near $642.37 (lower band) with a stop below $640. Target zones are $658.29 (30D support) and $674.83 (200D MA). If Powell’s AI partnerships gain traction, the $700 level could become a psychological hurdle to break.

Volatility on the Horizon: Balancing Bullish Momentum and Strategic Risks

The market is split: one camp bets Powell can turn Meta’s capital plans into cash flow, the other fears execution risks. The key is watching the $656.70 middle Bollinger Band as a pivot—break above it, and the $700 calls gain steam. Drop below $642.37, and the puts at $600 could trigger a selloff. Either way, this week’s options expiry (Jan 16) will test Meta’s resolve. Stay nimble—this stock isn’t sleeping through the night.