Meta’s Options Signal $700 Bull Case as AI Shifts Drive Volatility – Here’s How to Play It

• META’s price dropped 0.97% to $646.36, hitting an intraday high of $711 but struggling to hold above 30D MA ($631.23)
• Call open interest dominates at $700 (18,699 contracts) for next Friday, while puts cluster at $600 (15,459 OI)
• Block trades show 400 contracts sold at META20260116C770, hinting at long-term bullish positioning

The options market is whispering a $700 inflection point for Meta, but the technicals tell a more nuanced story. With RSI at 72 (overbought) and Bollinger Bands squeezing between $575.94 and $685.34, traders are caught between a short-term bearish trend and long-term AI-driven optimism. Let’s break it down.The $700 Call Wall and What Block Traders Are Hiding

Options data screams imbalance: next Friday’s $700 call has 18,699 open contracts, dwarfing the nearest put (15,459 at $600). This isn’t just bullish—it’s a price target battleground. The MACD (-0.17) and histogram (6.37) suggest momentum is fading, but the RSI’s 72 reading means a rebound isn’t out of the question.

Block trades add intrigue. The META20260116C770 sale of 400 contracts ($2.37M turnover) hints at institutional players hedging or scaling back long-term bets. Meanwhile, the META20251121C780/800 sell-offs (500 total contracts) suggest near-term profit-taking. For retail traders, this means: if the stock breaks $685 (upper Bollinger Band), the $700 call wall could ignite a short-covering rally—but watch for a breakdown below $630 (middle Bollinger Band), where 200D MA resistance looms.

Zuckerberg’s AI Pivot: Fuel or Foe for the Bull Case?

Meta’s recent news is a mixed bag. The $750 price target cut by Morgan Stanley reflects near-term pain from metaverse losses and AI R&D costs. Yet Zuckerberg’s 30% metaverse budget cut and Avocado AI project signal a strategic shift. The market is pricing in a “defining tech battleground” narrative—just not yet in the stock price. Creator economy tools and VR price hikes add short-term noise, but the $600 put wall (15,459 OI) suggests some investors see value if the AI pivot sticks.

3 Concrete Trades for Today’s Volatility

1. Bull Call Spread: Buy META20251219C700 (next Friday’s top OTM call) at $X, sell META20251219C750 to cap risk. Target: $700 break above Bollinger Band triggers momentum.
2. Stock Buy at Support: If META holds $630 (middle Bollinger Band), consider entry near $630–$635 with a stop below $620. Target: 13% gain to $710 (Morgan Stanley’s old PT).
3. Bear Put Hedge: Buy META20251219P600 if the stock dips below $640. Protects against a breakdown in the $630–$640 range.

Volatility on the Horizon: Why December Could Be Meta’s Make-or-Break Month

The 0.58 put/call ratio (call bias) and Avocado’s 2026 launch date mean options traders are betting on a post-holiday rebound. But with Reality Labs’ $4.7B Q3 loss still fresh, the stock could gap lower if earnings miss. Key levels to watch: $685 (Bollinger Band breakout), $630 (support), and $700 (call wall). If Meta closes above $685 this week, the bull case gains steam—but don’t ignore the $600 put wall. This is a stock dancing on the edge of a knife: AI optimism vs. metaverse reality.