Meta’s $800 Call Pile-Up and Bearish Block Trades Signal Short-Term Downturn: A Strategic Short Setup

• Meta (META) trades at $740.23, down 1.16% from its $748.91 close, with Bollinger Bands indicating a potential rebound near $730.10.
• Options data shows a 0.68 put/call open interest ratio, with $800 calls (OI: 10,747) and $730 puts (OI: 3,553) as key liquidity zones.
• Block trades reveal aggressive selling of $780 and $800 calls, hinting at bearish positioning ahead of November 2025 expirations.

The confluence of Meta’s bearish near-term technicals, a skewed call/put open interest imbalance, and large-scale bearish block trades paints a clear short-term risk profile. While the 30-day support zone at $738.12 offers a potential floor, the options market is pricing in a sharp pullback toward $720–$730. Traders should prioritize structured short setups and defensive options strategies to capitalize on this volatility.

Call-Put Imbalance and Whale Moves: A Bearish Signal at $800

The options chain reveals a stark imbalance: call open interest (1.19M) far exceeds put open interest (811K), with the $800 call (OI: 10,747) as the most liquid strike. This suggests institutional players are hedging against a rally, but the MACD histogram (-1.6) and RSI (48.3) indicate waning momentum. Meanwhile, block trades like the 4,000-lot sale of $780 calls (META20251121C780) and 5,798-lot $840 call dump (META20250919C840) signal bearish conviction. These trades, combined with the 200-day support zone ($747.25–$753.36) breaking, point to a high probability of a test of the lower Bollinger Band ($730.10).

News-Driven Context: Infrastructure Boons vs. Regulatory Risks

Meta’s $10B Louisiana data center and Ohio “supercluster” projects are bullish for long-term growth but come with regulatory headwinds. Critics warn of ratepayer risks tied to gas-powered plants, while AI partnerships (e.g., Reliance) and product launches (Ray-Ban smart glasses) could drive revenue. However, the market’s focus on short-term volatility—evidenced by the $800 call frenzy—suggests investors are discounting these positives for now. The $550M transmission line risk in Louisiana could also trigger a sell-off if regulatory scrutiny intensifies.

Actionable Trade Ideas: Shorting the $800 Call and Scalping the $730 Put

1. Options Short Setup: Sell the META20251121C800 call (OI: 9,694) with a stop-loss at $745. If Meta closes below $735 by November 21, the $800 call could lose 30–40% of its premium. For a more aggressive play, short the META20251121C780 call (OI: 3,455) with a target of $730.

1. Stock Scalping: Enter a short position near $740 with a tight stop at $745. Target $730–$735 as a key zone, where the 200-day MA (663.92) and Bollinger Band ($730.10) align. For a long bias, buy the META20251121P730 put (OI: 2,058) if Meta breaks below $735, aiming for a 20–25% move toward $720.

1. Defensive Strategy: Buy the META20251121P740 put (OI: 1,167) to hedge a long stock position. This strike offers 15–20% downside protection if Meta’s earnings or regulatory news triggers a selloff.

Volatility on the Horizon: Navigating the November 21 Expiry

With $800 calls and $730 puts as liquidity hotspots, the November 21 expiry could see sharp price swings. Traders should monitor the 30-day support zone ($738.12–$739.12) as a critical pivot. If Meta holds above $739, the long-term bullish trend (200-day MA at 663.92) could reignite. However, a break below $730 would validate the bearish case, with the 100-day MA (713.50) as a potential intermediate target. Position sizing and tight stops are essential given the high volatility ahead.