Meta (META) Options Signal $700 Call Contention as AI Pivots and Ad Fraud Spark Volatility—Here’s How to Play It

• META trades at $651.22, up 1.17% with volume surging to 8.1M shares.
• Call open interest spikes at $700 strike (18,887 contracts), while puts dominate at $600 (17,274).
• Block trades hint at big money bets on $770 calls expiring in January 2026.

Here’s the takeaway: Meta’s options market is locked in a tug-of-war between bulls eyeing a $700 breakout and bears hedging at $600, while technicals and news create a volatile crossroads. The stock shows upside potential if it clears key resistance but carries downside risks from regulatory and operational headwinds.

The $700 Call Wall and Whale Moves: A Battle for Direction

Meta’s options chain is a chessboard. This Friday’s $700 call (META20251219C700) has 18,887 open contracts—the highest of any strike—while the $600 put (META20251219P600) leads puts with 17,274. This imbalance suggests institutional positioning for a rally above $700 or a hedge against a drop below $600. The put/call ratio of 0.609 (favoring calls) reinforces bullish sentiment, but don’t ignore the danger: 19% of China’s ad revenue was fraud in 2024, and recent news shows Meta’s pivot back to leniency could reignite regulatory scrutiny.

Block trades add intrigue. A $2.37M bet on META20260116C770 (expiring Jan 16, 2026) signals long-term conviction in AI-driven growth. Meanwhile, large sell calls at $780 and $800 (expiring Nov 21) hint at profit-taking by whales who bought during the August peak. This mix of short-term calls and long-term bullish bets suggests a “buy the dip” mentality—but only if Meta’s fundamentals hold up.

Ad Fraud, AI Pivots, and the Investor Mindset

Meta’s news flow is a double-edged sword. On one hand, Zuckerberg’s AI overhaul—including a $14B investment in Scale AI and aggressive talent poaching—positions the company to compete with OpenAI and Google. On the other, ad fraud in China (which generated $18B in 2024 revenue) risks regulatory backlash and reputational damage. Investors are split: some see AI-driven growth, others fear a repeat of the 2024 fraud scandal. The key question is whether Meta’s pivot to “closed” AI models (like Avocado) will attract new revenue streams or alienate its open-source loyalists.

Actionable Trades: Calls for Breakouts, Puts for Protection

For bulls, the $700 call (META20251219C700) is a high-conviction play if Meta closes above its intraday high of $652.32. A tighter setup: a bull call spread with META20251219C700 and META20251219C750 to cap risk. For bears, the $600 put (META20251219P600) offers downside protection if the stock dips below its 200D MA ($671.11).

Stock traders should watch support at $632.35 (middle Bollinger Band) and resistance at $686.46 (upper band). Consider entries near $638–640 if support holds, with a target at $686.46. A break below $632.35 would signal a deeper correction into $578.24 (lower band).

Volatility on the Horizon: Balancing AI Hype and Ad Fatigue

Meta’s future hinges on two forces: AI innovation and ad market integrity. The stock’s 19% drop from its 52-week high shows near-term pain from capital spending and regulatory risks, but Citizens’ $900 price target implies long-term optimism. Traders must weigh the AI “hype cycle” against the reality of China’s ad fraud and the SEC’s looming probe. For now, the $700 call wall and block trades suggest a pivotal week ahead—position accordingly.