Meta’s $700 Call OI Surge and Nuclear News: A Bullish Setup for AI-Driven Breakouts

• META trades at $651.49, up 0.84% with volume at 6.08M, near its 30D MA of $654.50

• Put/Call OI ratio at 0.605 (calls dominate), with $700 calls (next Friday) leading at 35,901 OI

• Block trades show $3.25M sold in META20260116C670 calls, hinting at near-term bearish positioning

Here’s the takeaway: Meta’s options market is split between short-term caution and long-term bullish bets. The stock sits in a tight range but with call options piling up at $700+ strikes—suggesting smart money is pricing in a breakout. Let’s dig into why this matters for traders today.

Bullish OI at $700 and Bearish Shorts at $670: A Tug-of-War for META

The options chain tells two stories. For next Friday’s expiration, the $700 call (META20260116C700) has 35,901 open contracts—nearly 10x the $670 call’s 4,985. That’s a big bet on a $651 stock climbing 7.5% in a week. Meanwhile, the $670 call saw a $3.25M block trade sell-off, likely from hedge funds or institutions hedging short positions.

But don’t ignore the puts: $640 puts (5,735 OI) and $620 puts (3,512 OI) show downside protection is being bought. The put/call skew isn’t extreme, though—calls still dominate. This suggests traders expect a push higher, but with caution if the stock dips below $642 (lower Bollinger Band).

Nuclear News: A Tailwind for Long-Term Bulls, Not Just Options

Meta’s 6.6 GW nuclear deals with Vistra, TerraPower, and Oklo are massive. These aren’t just greenwashing—they’re securing power for AI data centers, including the Prometheus supercluster. The agreements lock in 20-year power purchase agreements and fund advanced reactor tech.

Investor perception? Positive, but not explosive. The stock’s 0.84% gain today feels like a consolidation after the news cycle. But here’s the kicker: Meta’s CEO called this "aggressive front-loading" to avoid AI growth constraints. That kind of language signals urgency—urgency that could translate to buying pressure once the market digests the fundamentals.

Trade Ideas: Calls at $700 and a Bullish Breakout Play

For options: Buy META20260116C700 calls if META breaks above $658.29 (30D support/resistance). The $700 strike is 7.5% out of the money but sits just below the 200D MA of $674.70. A close above $675 would validate the long-term bullish case. Alternatively, a bull call spread (buy META20260116C670 + sell META20260116C700) caps risk while leveraging the $670 block trade sell-off.

For stock: Consider entry near $652 if META holds above $642 (lower Bollinger Band). Target $675 as a first exit, with a stop below $640. The 30D MA at $654.50 offers immediate support; break that, and watch for a test of $642.89 (intraday low).

Volatility on the Horizon: Balancing Short-Term Noise and Long-Term Gains

Meta’s options market is a chess game. Short-term sellers are hedging at $670, but long-term buyers are stacking up at $700+. The nuclear news adds a layer of conviction for those willing to ride the AI energy story.

Here’s the play: If META holds its range and breaks above $658.29, the $700 calls could explode in value. But don’t ignore the block trade at $670—it’s a red flag for near-term volatility. For now, the stock looks like a coin flip between consolidation and a breakout. Your move? Stack the odds in your favor with a tight stop and a clear exit.