Meta (META) Options Signal $700 Bullish Bias: How to Position for AI-Driven Volatility

Current Snapshot

• META trades at $662.73, down 0.72% from $667.55 after opening at $668.1
• Call open interest dominates at $700 and $680 strikes for Friday expiration
• AI-driven ad growth headlines clash with internal leadership tensions

Here’s the core insight: Meta’s options market is pricing in a strong upside bias, with heavy call open interest at $700 and $680 strikes. Technicals show a short-term bullish trend, but long-term range-bound pressure lingers. The stock’s AI-driven revenue growth and regulatory risks create a volatile setup—traders need to balance optimism with caution.Bullish Sentiment Locked in $700–$680 Calls

Let’s start with the options data. This Friday’s call open interest peaks at $700 (11,091 contracts) and $680 (10,532), while puts max out at $630 (6,034) and $660 (5,053). The put/call ratio of 0.58 (put OI vs call OI) screams bullish positioning. But here’s the twist: the META20260116C770 block trade ($2.37M turnover) hints at big players eyeing a January 16th expiration for a potential $770+ move.

This isn’t just retail hype. The $700 strike acts as a psychological magnet—calls here have 11,091 contracts in play, suggesting smart money expects a breakout. But don’t ignore the puts. The $660 strike (5,053 OI) could act as a floor if AI optimism falters.

AI Growth vs. Leadership Drama: What’s the Real Story?

Meta’s AI-powered ad tools hit a $60B annual run rate, and Q3 revenue grew 26% YoY. That’s solid. But internal tensions between Zuckerberg and AI head Alexandr Wang, plus regulatory scrutiny in the EU and India, add noise. The market’s pricing in AI success, but execution risks remain.

Here’s the key takeaway: The options market assumes AI monetization will outpace leadership drama. If the stock breaks above $670 (200-day EMA at $667), the $690–$700 range becomes a new battleground. But if the $648 support (30D level) fails, the $630–$633 zone could trigger panic selling.

Actionable Trades for TodayFor Options Traders:

• META20260102C675 (next Friday’s $675 call): A leveraged play if the stock reclaims $670. With RSI at 53 and MACD above signal line, a rebound is likely. Target $690–$700 for 10–15% gains in 7 days.
• Bearish Put Spread: Buy $660 puts (5,053 OI) and sell $630 puts (6,034 OI) if the stock dips below $648. Caps risk while profiting from a potential $630–$633 bounce.

For Stock Traders:

• Long Entry: Consider buying near $661.32 (intraday low) if support holds. Target $670 (200-day EMA) as a first hurdle, then $690 if Bollinger Bands (upper at $675.64) break. Stop loss below $648.
• Short-Term Play: Sell into weakness near $648–$646.45 (30D support) if RSI dips below 50. But don’t hold past Friday—options expiration could force a directional move.

Volatility on the Horizon

Meta’s options market is a tug-of-war between AI optimism and execution risks. The $700 call wall and block trades suggest a January 16th expiration could be pivotal. If the stock holds above $648, the 200-day MA at $667 becomes a catalyst. But don’t ignore the $630–$633 puts—this is where panic could ignite a rebound.

Bottom line: Position for a $670–$700 rally if AI monetization accelerates. But keep a tight stop below $648. The next 7 days will test whether Meta’s AI bets can outpace its leadership drama and regulatory headwinds.