Meta (META) Options Signal $650 Bullish Bias as AI Shifts and VR Exit Create Volatility Playbook

• META trades at $623.00, up 0.35% with volume surging to 8.7M shares
• Options call open interest dominates at $650–$700 strikes, while block trades hint at bearish hedging
• VR shutdown and AI pivot news create a mixed bag for long-term investors

The market is whispering two conflicting stories about Meta right now. On one hand, options traders are loading up on calls above $650, betting on a rebound from oversold levels. On the other, block trades in puts and bearish technicals suggest lingering caution. Let’s break down what this means for your trading desk today.Bullish Calls Clot at $650–$700, But Puts Tell a Different Tale

Options data shows a clear divide. This Friday’s call open interest peaks at $650 (18,201 contracts) and $700 (33,799), while puts cluster near the $600–$620 range. The 0.59 put/call ratio (calls dominate) suggests traders expect a rebound—but not without risks.

Here’s the rub: A massive block trade bought 750 puts at $620 (META20260130P620) today. That’s like seeing a storm cloud on a sunny day. It hints big players are hedging against a breakdown below the Bollinger Band lower bound ($622.53). Meanwhile, the RSI at 28 signals oversold conditions, but the MACD (-6.44) and bearish Kline pattern warn momentum hasn’t fully reversed.

VR Exit and AI Pivots: Catalyst or Cracks?

Meta’s shutdown of Quest for Business and Horizon Workrooms is a strategic pivot. The news aligns with options sentiment—calls above $650 imply belief in AI-driven recovery, while puts reflect skepticism about execution risks.

But don’t ignore the red flags: $100B+ AI CapEx could strain cash flow, and TikTok’s ad growth poses a real threat. The market’s mixed reaction (down 6.6% vs S&P 500) shows investors are weighing these risks. If AI smart glasses take off, the $650–$700 calls could pay off. If not, the $620 support level (where those puts sit) becomes critical.

3 Concrete Trades for Today’s Volatility

1. Bull Call Spread (Next Friday Expiry): Buy META20260123C650 at $4996 OI. Target a $625–$630 entry if the 200D MA (675.55) breaks higher. Exit at $680 if the 100D MA (687.88) acts as resistance.
2. Bear Put Hedge (This Friday Expiry): Buy META20260116P620 at $8878 OI. Set a stop-loss above $629.08 (intraday high) to avoid getting washed out by short-term bounces.
3. Stock Swing Trade: Consider entry near $622.50 (lower Bollinger Band) if support holds. Target $650 as a near-term goal, but watch for a breakdown below $621.25 (intraday low) to trigger deeper declines.

Volatility on the Horizon: Prepare for a Bumpy Ride

The next two weeks will test Meta’s resolve. With Reality Labs layoffs and Horizon Workrooms shutdown looming, short-term volatility is baked in. But for those who can stomach the noise, the $650 call strikes and $620 put levels offer clear entry points. The key is to balance bullish AI optimism with bearish caution—because in Meta’s world, both stories are fighting for airtime right now.