Meta (META) Options Signal Bullish Momentum: Key Strikes and Trade Setups for Dec 5, 2025

• META surges 1.75% to $673.14, breaking above its 200D MA of $671.57.
• Call open interest dominates at $675–$700 strikes, while puts cluster below $630.
• Block trades hint at big money bets on AI-driven growth, not Metaverse cuts.
• RSI near overbought (70.25) and MACD crossing above signal short-term bullish bias.

The options market is whispering a clear message: traders are leaning all-in on Meta’s upside, with call open interest (OI) at the $675–$700 range outpacing puts by a 2:1 margin. Combine that with a 5% Wall Street bounce after Metaverse budget cuts and fresh AI partnerships, and you’ve got a stock primed for a breakout—or a sharp correction if sentiment shifts. Let’s break it down.Bullish Bets and Hidden Risks in the Options Chain

The call-heavy OI at $675 (9,544 contracts) and $700 (7,036) suggests traders are pricing in a potential push toward $690–$700 by year-end. These strikes align with Meta’s 100D MA ($713.08) and key resistance levels from late 2024. But don’t ignore the puts: the $630 strike (4,790 OI) acts as a psychological floor. If the stock dips below its intraday low of $662.42, that support could crumble, triggering a test of the 30D support at $608.65.

Block trades add intrigue. The largest, a $2.37M bet on the META20260116C770 call (expiring Jan 16, 2026), signals long-term confidence in Meta’s AI pivot. Meanwhile, recent sell calls at $780 and $800 (expiring Nov 21) suggest some profit-taking ahead of earnings, but the volume here is minimal compared to the bullish bets.

News Flow: AI Wins Out Over Metaverse Cuts

Meta’s AI partnerships with CNN, Fox, and USA Today are the real story here. These deals aren’t just about data—they’re about positioning Meta’s AI chatbot as a go-to news source, which could drive user engagement and ad revenue. The Metaverse cuts, while headline-grabbing, are already priced in: the stock gapped up 5% on the news, but the 30D MA ($645.44) and 200D MA ($671.57) suggest the market sees this as a necessary pivot, not a death knell.

Investor perception matters. Retail traders love AI narratives, and Meta’s real-time news integration could attract a new wave of users. But if the AI rollout stumbles or the Metaverse unit’s losses hit $80B+ by 2026, the puts at $630 and below could see a rush.

Actionable Trade Ideas: Calls, Breakouts, and Stops

For options:

• META20251212C680 (next Friday’s $680 call): With 3,269 OI and the stock trading at $673, this strike offers a 1.4% buffer to break even. If Meta holds above $662.42, this could be a 5–7% gain by Dec 12.
• META20251212C700 (next Friday’s $700 call): A riskier play for a potential 10%+ move, but only if Meta’s AI news drives a breakout.

For stock:

• Entry near $662.42 (intraday low) if support holds. Target $685–$700 as the 100D MA and AI-driven optimism take hold.
• Stop-loss below $650 to protect against a breakdown in the Bollinger Band middle ($621.06).

Volatility on the Horizon: Navigating Meta’s AI-Driven Path

The next two weeks will test Meta’s resolve. A close above $685 could validate the bullish case, while a drop below $650 would reignite bearish bets. The options market is already pricing in a 68% chance of staying above $630 (based on put/call ratios), but don’t sleep on the 30D support at $608.65—it’s a make-or-break level for the AI narrative.

Bottom line: This is a stock at a crossroads. The AI partnerships are a win, but execution matters. For now, the data says buy the rumor, sell the news—but only if you’re disciplined with stops. The next leg of this story hinges on whether Meta’s chatbot becomes a news hub or a footnote in the AI race.