Meta (META) Options Signal $700 Call Frenzy as AI Pivot Fuels Bullish Setup – Here’s How to Play It

• META trades at $667.17, down 0.93% from $673.42, with volume surging to 7.8M shares
• Call open interest spikes at $700 strike (18,477 contracts) for Dec 19 expiry, dwarfing put activity
• Block trades show $2.4M call block at $770 expiring Jan 16, hinting at institutional positioning

The market is whispering: Meta’s AI pivot is rewriting the options playbook. With the stock clawing back from a 100-day MA of $712.78, the options chain screams bullish conviction. Let’s break down why $700 calls are the new battleground—and how to play it.The $700 Call Frenzy: A Bullish Bet on AI’s Takeoff

META’s options market is polarized. For next Friday’s expiry, 18,477 contracts are open at the $700 call strike—nearly triple the next highest call (15,054 at $1,000). Puts, meanwhile, trail with just 11,649 at $600. This 1:1.6 call/put ratio isn’t just noise; it’s a vote of confidence in Meta’s AI-driven rebound.

But here’s the twist: Block trading data reveals a $2.4M block at META20260116C770 (Jan 16 expiry). That’s not a typo—$770 is 9% above current price. Why? Big players are hedging long-term AI bets, assuming Meta’s $70–72B 2025 AI capex pays off. The risk? If AI hype falters before Q1 2026, these calls could rot into worthless paper.

Meta’s Metaverse Cuts: A Strategic Shift, Not a Death Knell

The news cycle is loud: Meta’s slashing 30% of its metaverse budget, shifting to AI wearables. On the surface, this looks like a retreat. But dig deeper: The stock popped 3% on the news, mirroring its 2022 rebound after layoffs. Why? Investors love the pivot to practical AI—think Ray-Ban smart glasses, not VR headsets.

The EU ad compromise? A mixed bag. While limiting data tracking could dent ad revenue, it’s a compliance win. The market’s pricing in a short-term boost from this, not a collapse. Just don’t expect the DMA rollout to move the needle much before Q1 2026.

Trade Ideas: Ride the $700 Wave or Hedge the Drop

For options traders: META20251219C700 (Dec 19 expiry) is your entry. With 18,474 contracts open, this strike is the gravitational center of bullish bets. If META closes above $690 by expiry, these calls could pop 20–30%.

Stock players: Target an entry near $611.90 (30D support). If it holds, aim for a rebound to $700. But watch the 200D MA at $747.25—if Meta cracks $660, pivot to a bearish put spread: sell META20251219P600 and buy META20251219P550 to cap losses if the AI narrative stumbles.

Volatility on the Horizon: AI’s Double-Edged Sword

Meta’s in a tightrope walk. The AI pivot could supercharge growth—or leave it with bloated costs if wearables underwhelm. For now, the options market’s pricing in a 10–15% rally by Dec 19. But don’t ignore the puts: That $600 strike has 11,649 contracts open for a reason. If AI hype fizzles, the stock could gap down.

Bottom line: This is a high-conviction trade. The $700 calls are your rocket fuel if AI takes off. But keep a seatbelt handy—Meta’s still dancing on a tightrope between innovation and overreach.