Meta’s Options Signal a Bullish Rebalance: Target $700 Calls as AI Shifts Gain Momentum

• META trades at $669.74, down 0.55% from $673.42, with intraday range between $665.64 and $676.71.
• Options open interest shows a 0.56 put/call ratio, with $700 calls (next Friday expiry) leading at 18,477 contracts.
• Block trades hint at whale activity: $770 call (Jan 2026 expiry) sees $2.37M turnover, signaling long-term bullish bets.

The stock’s 3% rally on AI repositioning aligns with options flow—here’s how to play it.The Options Imbalance: A Playbook for $700

Let’s start with the numbers. The next Friday’s $700 call (META20251219C700) has 18,477 open contracts—nearly double the $690 strike. That’s not random. It’s a crowd-sourced target. Meanwhile, puts are skewed lower: $600 puts (11,649 OI) dwarf even the $660 puts (2,365 OI). The put/call ratio of 0.56 means bulls are in control, but the block trades tell a subtler story. The $770 call (META20260116C770) saw a $2.37M block trade—big money hedging or betting on a 2026 rebound. Closer to home, the $700 call’s dominance suggests a short-term inflection point: if META breaks above its 200D MA ($671.47), this strike could act as a gravity well.

News as Catalyst: AI Wins, Metaverse Cuts, and the $77B Reset

Meta’s 30% metaverse budget cut isn’t just cost-cutting—it’s a strategic pivot. Redirecting $70–72B to AI and wearables (Ray-Ban smart glasses, “Malibu 2” devices) aligns with investor demands for profitability. The stock’s 3% pop on the news isn’t just optimism; it’s validation. The EU’s ad-choice rule (Jan 2026) adds regulatory noise, but the AI shift is the real driver. Think of it like a car: the metaverse was the gas pedal, now it’s the electric motor. The RSI at 73 hints at near-term overbought conditions, but the 30D MA ($643.42) and 200D MA ($671.47) form a tight trading range. If the stock holds above $660, the AI narrative could push it toward $700.

Trade Ideas: Calls for the Bold, Puts for the PragmaticFor Options:

• Bullish Play: Buy META20251219C700 (next Friday expiry). Entry: $665–670. Target: $700. Stop-loss: below $660. Why? The strike’s OI suggests a crowd-sourced target, and a break above the 200D MA could trigger a rally.
• Bearish Hedge: Sell a put spread (META20251219P660 + buy META20251219P630). Credit: ~$3–$4. Protects downside while staying bullish.

For Stock:

• Entry: $665–670 (support near 30D MA).
• Targets: $690 (intraday high), then $710 (200D MA + 4%).
• Stop: Below $655 (lower Bollinger Band at $575.73 is too far; use $655 as a near-term floor).

Volatility on the Horizon: Bulls Have the Edge, But Patience Pays

The data tells two stories: short-term volatility (RSI near overbought, Bollinger Bands wide) and long-term positioning (block trades, AI bets). The key is timing. If META holds above $660, the $700 call becomes a high-probability play. But if it breaks below $655, the $600–$630 put range could dominate. Either way, the options market is pricing in a directional move—your job is to pick the side. And right now, the crowd’s money is on AI, not VR.

Final Take: Meta’s options and news flow paint a clear picture: the stock is rebalancing toward AI-driven growth. The $700 call is the most liquid bet, but don’t ignore the puts if the market gets spooked. This isn’t a binary call—it’s a setup. Play it with discipline, and let the data guide your entries.