Meta (META) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $700+ Upside Potential

• Meta’s options market shows a 0.60 put/call open interest ratio, favoring bullish bets at strikes like $700 and $720.
• Block trades reveal large sell calls at $770 and $780, hinting at institutional positioning for a 2026 AI-driven rally.
• Technical indicators (RSI at 56.6, bullish MACD crossover) align with options data to suggest a breakout above $667.77 resistance.

Here’s the deal: Meta’s options market isn’t just bullish—it’s targeting a specific price level. The combination of heavy call open interest at $700, block trades at $770, and a short-term technical setup suggests traders are pricing in a post-earnings pop or AI-driven momentum. Let’s break down why this could be a high-probability trade—and where the risks lie.

Bullish Sentiment Locked in at $700 and Beyond

The options data tells a clear story. For Friday’s expiration, calls at $700 (OI: 17,493) and $720 (OI: 4,509) dominate the chain, while next Friday’s $700 strike retains 10,278 open contracts. This isn’t random—traders are betting Meta will test or exceed these levels. The block trade at META20260116C770 (selling calls at $770) adds weight: someone is hedging a big bet that Meta’s AI push will drive shares north of $700 by early 2026.

But don’t ignore the puts. While bearish sentiment is weaker (put/call ratio: 0.60), the $630 put (OI: 5,603) next week hints at a potential support zone. If Meta stumbles below $643.30 (middle Bollinger Band), that could trigger a short-term rebound trade. Still, the call-heavy setup suggests a directional bias.

AI Ambitions and Data Center Spending Fuel the Narrative

Meta’s recent news isn’t just hype. The $14B investment in Scale AI and a $27B data center in Louisiana scream "long-term infrastructure play." CEO Zuckerberg’s push for "world models" and coding-focused LLMs (like Avocado) positions Meta to compete with OpenAI and Google. Analysts at TD Cowen see an $810 price target—which aligns eerily with the $700+ call strikes in the options chain.

That said, internal friction (Wang vs. Zuckerberg) and Yann LeCun’s exit could slow progress. But the stock’s 2.3% rise during trading hours shows investors are buying the vision, not the drama.

Actionable Trade Ideas: Calls, Breakouts, and Precision Entries

For options traders:

• Buy META20251226C700 (next Friday’s $700 call). If Meta closes above $667.77 (intraday high), this strike could see 30%+ gains.
• Sell META20251226C720 (if you’re bullish but risk-averse). The $720 strike has lower OI but could act as a "floor" if the $700 level fails.

For stock players:

• Enter near $646–$648 (30D support) with a tight stop below $641.10 (lower Bollinger Band).
• Target $700 first, then $747.25 (200D resistance). If Meta cracks $700, the 200D MA at $671.11 becomes a psychological floor.

Volatility on the Horizon: Positioning for Meta’s AI-Driven Momentum

The next two weeks will test Meta’s resolve. A close above $667.77 could ignite a rally toward $700, fueled by AI hype and data center optimism. But watch for a breakdown below $643.30—the middle Bollinger Band. If that happens, the $600 put strike (OI: 12,702) might see action.

Bottom line: This isn’t a "buy and hold" trade. It’s a precision play on Meta’s AI narrative. The options market has already priced in a $700+ finish by early 2026. Your job? Ride the momentum—or hedge it—before the crowd catches on.