Meta (META) Options Signal Bullish Breakout: 675-700 Call Dominance and AI-Driven Momentum

• META surges 1.63% to $672.32, trading above its 200-day MA of $671.57
• Call open interest spikes at $675–$700 strikes, with 7036 contracts at $700 (this Friday’s expiry)
• Block trades reveal $2.37M bet on META20260116C770, hinting at long-term AI optimism

Here’s the takeaway: Meta’s options market is pricing in a short-term bullish breakout, with heavy call activity at key strikes and technicals aligning for a push above $680. But watch the $662 support level—break below it, and the 30D range of $608–$611 could become a battleground.

Bullish Pressure at 675–700 Calls, but Puts Signal Caution

META’s options chain is a goldmine for active traders. This Friday’s expiring calls show 9544 contracts at $675 and 7036 at $700, while puts max out at $630 (4790 OI). The put/call ratio of 0.57 (calls dominate) suggests investors are hedging for a rally, not a crash. But don’t ignore the block trades: a $2.37M bet on META20260116C770 (Jan 2026 expiry) and multiple sell calls at $780–$800 strikes (expiring Nov 21) hint at profit-taking by whales. The message? Short-term bulls are aggressive, but long-term players are hedging above $700.

AI Deals and Metaverse Cuts Fuel the Narrative

Meta’s recent news is a mixed bag. The AI publisher partnerships (CNN, Fox News, etc.) are a strategic pivot toward real-time AI content, which could juice user engagement and ad revenue. Meanwhile, the 30% metaverse budget cuts—praised by Wall Street—free up cash for AI labs. But the $30B Hyperion data center raises red flags about an AI bubble. Retail traders are betting the AI narrative wins out, hence the call-heavy options flow. However, if the market questions the sustainability of Meta’s AI push, the $662 support (lower Bollinger Band) could crumble.

Trade Ideas: Calls at 675–700, Stock Breakouts with Precision

For options, target the META20251212C675 (this Friday’s expiry). With the stock at $672.32, a $675 call gives you leverage if the AI hype drives a pop above $680. For a safer play, consider a call spread: buy META20251212C675 and sell META20251212C700 to cap risk. If you’re bullish for next Friday, META20251219C700 (5545 OI) offers a longer runway.

For stock, enter near $662 (intraday low) if the 200-day MA holds. Set a stop-loss below $650 (lower Bollinger Band). The first target is $685 (breaking through the 100D MA of $713), with a stretch goal at $700. But if the stock dips below $662, consider fading the rally with puts at $630–$650.

Volatility on the Horizon: Balancing AI Hype and Reality

Meta’s story is a tightrope walk between AI optimism and metaverse skepticism. The options data and technicals align for a short-term push above $680, but the long-term 200D range (now $747–$753) looms. The key is timing: this Friday’s expiry could see a pop if the AI narrative gains traction, but next week’s moves will test whether the rally is sustainable. Keep an eye on the $700 level—it’s both a call-heavy strike and a psychological threshold for Meta’s AI ambitions.

Bottom line: This is a high-conviction trade for AI believers, but don’t ignore the risks. The market’s love for Meta’s pivot is clear—but love can turn to fear fast if the data centers don’t deliver.