Meta (META) Options Signal Bullish Bias at $700 Strike – Here’s How to Play the AI-Driven Rebound

• META trades at $647.56, down 1.44% amid a short-term bullish trend but long-term bearish setup.
• Call open interest dominates at $700 and $680 strikes, while a block trade bought 281 puts at $630 (expiring March 4).
• Bank of America raised its price target to $885 after Meta’s AMD AI chip deal, but RSI (44.36) hints at oversold conditions.

The options market is whispering a key message: traders are betting on a rebound toward $700, but a breakdown below $635 could trigger panic.What the Options Chain Reveals About Market Sentiment

The options data tells a story of cautious optimism. For this Friday’s expirations, calls at $700 (OI: 6,875) and $680 (OI: 6,531) dominate, suggesting a significant portion of traders expect a rebound to challenge Meta’s 30-day resistance zone (668.53–671.21). Meanwhile, puts at $600 (OI: 4,956) and $520 (OI: 3,420) hint at deep downside fear—but those strikes feel too far from current levels to justify action.

The most intriguing move? A block trade bought 281 puts at META20260304P630 (March 4 expiration), a strike just 2.7% below the current price. This isn’t a bet on a crash—it’s insurance. Big players are hedging against a pullback, especially with the RSI hovering near oversold territory and the MACD (-3.55) still negative.

How Recent News Fuels the Bull Case

Meta’s AI partnerships are the real game-changer. The $60B AMD deal and multi-billion-dollar Google TPU contract aren’t just headlines—they’re infrastructure bets that validate Meta’s AI ambitions. Bank of America’s upgraded $885 target hinges on these partnerships reducing costs and expanding Meta’s cloud capabilities.

But don’t ignore the risks. Jim Cramer’s focus on lobbying efforts and ongoing regulatory scrutiny (especially around youth engagement) means the stock could face headwinds if earnings miss expectations. The legal actions against scammers and crypto experiments add complexity, too—positive for brand trust, but not necessarily a direct catalyst for share price moves.

Actionable Trade Ideas for TodayFor Options Traders:

• Bullish Play: Buy META20260306C670 (March 6 $670 call). With 5,402 open interests and the 200-day MA at $691.25, a break above $668.53 could trigger a rally toward $700.
• Bearish Hedge: Buy META20260304P630 (block-traded strike). If Meta dips below its 20-day support at $639.61, this put offers downside protection.

For Stock Investors:

• Entry Near $643.45 (today’s open): A rebound above the 30-day MA ($657.47) could reignite the short-term bullish trend. Target $668.53 first, then $691.25 (200-day MA).
• Stop-Loss Alert: If Meta breaks below $635 (lower Bollinger Band at $610.71 is too far), tighten stops to $630 to limit downside.

Volatility on the Horizon

The next 10 days will test Meta’s resolve. A breakout above $670 could validate the call-heavy options bets and push toward Bank of America’s $885 target. But a sustained drop below $630 would force a reevaluation of the AI narrative. Either way, the options market has already priced in a binary outcome—the question is whether fundamentals will deliver.

For now, the data leans bullish. The RSI’s dip below 45 suggests a rebound is due, and the call/put ratio (0.637) shows conviction. But don’t ignore the puts—they’re there for a reason. Stay nimble, and let the price action decide your next move.