Meta (META) Options Signal $650 Bullish Battle: Whale Moves and RSI 28 Setup

• META surges 1.01% to $627.07, trading above its 30D MA (653.06) but below 200D MA (675.55)
• RSI at 28 suggests oversold conditions, while Bollinger Bands hint support at $622.52
• Call OI dominance (178K vs 105K puts) with heavy concentration at $650-$700 strikes
• Block trade alert: 750 contracts bought in $620 put (META20260130P620)

The options market is whispering a $650 inflection point for META today. With RSI at 28 and price testing the lower Bollinger Band, technicals scream oversold. But here's the twist: call open interest is packed at $650-$700 strikes for Friday expiration, while block traders are hedging with $620 puts. This isn't just noise—it's a setup. The stock shows upside potential if bulls reclaim $650, but downside risk remains acute below $620.Bull Call Battle at $650 and Bear Put Hedges

Let's unpack the options chessboard. This Friday's call OI peaks at $650 (18,201 contracts) and $700 (33,799), suggesting institutional players are pricing in a potential rebound. The $650 strike is especially interesting—it sits just below the 30D MA and within the Bollinger Band range. Meanwhile, puts are clustered at $600-$620, with that $620 block trade (META20260130P620) acting like a red flag for short-term bears.

But don't ignore the risks. The MACD (-6.44) and 28 RSI tell us momentum is fragile. If price cracks below $622.52 (lower Bollinger Band), those $620 puts could trigger a cascade. The block trade's $1.43M volume also hints at strategic hedging—someone's bracing for a dip.

Meta's Metaverse Pivot: AI Saviors or Red Herrings?

The news flow paints a mixed bag. Meta's $4.2B metaverse write-off and 1,000 job cuts scream short-term pain, but their pivot to AI wearables (Ray-Ban smart glasses) could be a long-term play. Here's the rub: options traders aren't pricing in doom. The 0.59 put/call OI ratio suggests they expect AI growth to outpace metaverse losses.

But let's not get ahead of ourselves. The $100B+ AI CapEx risk and TikTok's ad revenue threat are real headwinds. If investors start doubting Meta's AI pivot, that $620 put strike could become a self-fulfilling prophecy. The key is watching whether the stock holds its 30D MA at $653.06—break above that, and the $650 call strikes turn from speculative to strategic.

Trade Ideas: $650 Call Plays and $620 Put Hedges

For options traders, the META20260123C650 (next Friday's $650 call) offers a high-conviction play. With 4,996 OI and RSI at oversold levels, a rebound to 653.06 (30D MA) could ignite this strike. If you're bearish but cautious, the META20260123P620 (next Friday's $620 put) aligns with both the Bollinger Band support and that big block trade.

Stock traders: Consider entry near $622.52 (lower Bollinger Band) with a tight stop below $620. Target $650 first, then $659.52 (200D support/resistance zone). For the bold, a bullish call at $627.07 with a $650 target could capture the RSI rebound.

Volatility on the Horizon: Navigating Meta’s Crossroads

This week's options activity tells a story of cautious optimism. Bulls are stacking up at $650, bears are hedging at $620, and technicals are primed for a breakout. The coming 48 hours will test whether Meta's AI pivot can overcome its metaverse hangover. Keep your eyes on the $650-659.52 range—it's where the next chapter gets written. And remember: that $620 put block trade isn't just noise—it's a warning siren for those who think this trade is a sure thing.