Meta (META) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $675–$640 Ranging Play

• META’s price dropped 1.44% to $650.57, testing 30D support at $646.45.
• Call open interest dominates at $675 and $685, while puts cluster at $650 and $630.
• A $2.37M block trade in META20260116C770 hints at big money bullish bets.

Here’s the core insight: options data and technicals suggest a tight rangebound battle between $640 and $675, with bulls clinging to momentum but bears eyeing a breakdown. The stock shows modest upside potential if it holds key support, but downside risk amplifies if it cracks below $643.50. Let’s break it down.

Bullish Calls Stack Up, But Puts Signal Caution

The options market is all over the $675 and $685 call strikes for Friday expiration, with open interest of 10,635 and 9,287 contracts respectively. That’s not just noise—it’s a crowd betting on a rebound above the 20D MA ($658.24). But don’t ignore the puts: $650 and $630 puts have 4,635 and 4,385 OI, showing smart money is hedging a drop below the 30D MA. The put/call ratio of 0.59 (calls > puts) leans bullish, but the block trade in META20260116C770—400 contracts at $770—feels like a whale testing the waters for a big move. Just don’t confuse volume with certainty; the intraday low at $643.50 is a fresh red flag.

News Adds Fuel to the Fire

Meta’s $2B Manus acquisition and Druckenmiller’s 1.3% portfolio stake are bullish tailwinds. But Yann LeCun’s critique of the AI team and the scam ad scandal? That’s a two-edged sword. Investors love the AI hype, but internal chaos and regulatory risks could trip the stock. Think of it like a storm brewing in the background—good weather for a rally, but lightning could strike if sentiment shifts.

Actionable Plays for Today

For options traders, the most compelling setup is buying the META20260102C675 or META20260102C685 calls if the price rebounds above $658.24 (middle Bollinger Band). Why? The RSI at 56 is neutral, and the MACD histogram (1.08) suggests fading momentum. If you’re bearish, the META20260102P650 put could cap losses if the stock dips below $643.50. For stock traders, consider a long entry near $648.14 (30D support) with a target at $675 (upper Bollinger Band). A stop below $643.50 would force a reevaluation.

Volatility on the Horizon

The next 72 hours will test Meta’s resolve. A close above $675 could reignite the 200D MA battle ($747.25), but a breakdown below $640 (lower Bollinger Band) would invite short-term pain. The block trades and options flow suggest a $675–$640 trading range is the immediate battleground. Stay nimble—this isn’t a long-term bet, but a tactical dance with momentum.