Meta (META) Options Signal $700 Call Contention as AI Infrastructure Hires Spark Volatility – Here’s How to Position for Friday’s Expiry

• Meta’s options market shows heavy call open interest at the $700 strike for Friday expiry, while puts cluster at $650.
• Dina Powell McCormick’s appointment as President and Meta’s shift to closed AI models are fueling strategic capital bets.
• Block trades hint at institutional interest in March 2026 calls, signaling long-term bullish positioning.

Here’s the core insight: Meta’s options activity and technicals paint a mixed but actionable picture. The stock is trading in a tight range near its 200-day moving average ($674.83), with bearish near-term momentum but strong long-term infrastructure-driven optimism. The key question is whether the $650 support level holds—or if the $700 call wall will force a breakout. Let’s break it down.

Bullish Call Walls vs. Defensive Put Bets: What the Options Say

The options chain for this Friday (Jan 16) shows a striking imbalance. Calls at $700 ($OI: 34,995) and $750 ($OI: 14,406) dominate, while puts cluster at $650 ($OI: 14,505) and $640 ($OI: 10,144). This suggests two camps: aggressive bulls betting on a near-term rebound to $700+ and cautious bears hedging a drop to $640–$650. The put/call ratio of 0.607 (favoring calls) reinforces the bullish tilt.

But don’t ignore the risks. The RSI at 42.69 and MACD histogram (-1.39) hint at short-term exhaustion. If the stock breaks below the lower Bollinger Band ($642.37), the $640–$645 zone could see panic selling. On the flip side, a close above $659.09 (30D resistance) might trigger a rally toward $700, especially with block trades like the 600-lot META20260320C650 call purchase hinting at March 2026 bullish positioning.

Dina Powell’s AI Push: Fuel or Fizzle for the Trade?

Meta’s recent news is all about infrastructure and AI. Dina Powell McCormick’s appointment as President—overseeing $600 billion in data center and energy projects—signals a hard pivot toward capital-intensive growth. Her Goldman Sachs and Trump administration background also adds a layer of political credibility, which could attract institutional capital.

The shift to closed-source AI models (Avocado, Mango) is another wildcard. While this could boost margins, it might also delay open-source adoption. But here’s the kicker: Powell’s role in securing sovereign wealth fund partnerships aligns perfectly with the options data. The $700 call wall isn’t just speculation—it’s a bet on her ability to execute a $50 billion Louisiana data center and scale AI infrastructure. If the market trusts her track record, the stock could see a re-rating.

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options traders:

• Bullish Play: Buy the META20260116C700 calls expiring Friday. If Meta rallies above $659.09 (30D resistance), these could gain steam.
• Bearish Hedge: Buy the META20260116P650 puts for downside protection. They’ll gain value if the stock dips below $645.43 (intraday low).
• Longer-Term Bet: The META20260320C650 block trade (600 contracts) suggests a March 2026 target. Buy these if Powell’s infrastructure rollout accelerates.

For stock traders:

• Entry Near $645–$647: If the stock holds above $645.43, consider buying dips toward $642.37 (lower Bollinger Band).
• Target Zones: $659.09 (30D resistance) and $700 (call wall).
• Stop-Loss: Below $640 triggers a reevaluation.

Volatility on the Horizon: Balancing AI Hype and Technical Realities

Meta’s story is a tug-of-war between AI optimism and near-term technical fragility. The $700 call wall represents a psychological threshold—if Powell’s infrastructure bets pay off, this could be a floor. But until the stock breaks above $671.03 (upper Bollinger Band), the range-bound 200-day MA suggests caution.

Bottom line: This is a high-conviction trade for those who believe in Meta’s AI infrastructure gamble. For others, the $650–$659 range offers a safer perch to watch the show. Either way, Friday’s expiry could be a litmus test for the stock’s next move.