Meta (META) Options Signal Aggressive Bullish Bias: Target $700+ with Caution on $600 Support

• META trades at $650.58, down 0.97% with volume surging to 5.44M
• Call open interest dominates at $690–$700 strikes; puts cluster heavily at $600
• Block trades show whales selling calls at $780–$840, hinting at profit-taking
• Meta’s AI strategy shift and VR price hikes fuel near-term volatility

Here’s the thing: Meta’s options market is screaming bullish—but with a twist. The call/put open interest ratio sits at 0.58 (calls > puts), and the top OTM calls cluster between $670 and $705. Yet the $600 put wall looms like a red flag. Let’s break it down.

Bullish Calls vs. Bearish Safeguards: What the Options Say

The options chain is a chessboard. For this Friday’s expiry, META20251212C700 and META20251212C690 dominate with 10,291 and 13,693 open contracts respectively. That’s not just noise—it’s a crowd betting on a $700+ move. But here’s the catch: the META20251212P600 put has 4,472 open contracts, acting like a safety net for a potential drop to $600.

Meanwhile, block trades tell a story. The META20260116C770 call saw a $2.37M trade, and older META20251121C780 calls were sold for $1.23M. These aren’t random—they suggest whales are locking in gains or hedging long-term bets. But if the $650.58 price dips below the 30D support at $608.65, those puts could trigger a cascade.

Meta’s AI Drama: Fuel for the Fire or a Speedbump?

Meta’s pivot to closed AI models and VR price hikes is a double-edged sword. On one hand, the shift toward monetizable AI (using rivals’ models like Google’s Gemma) aligns with industry trends—OpenAI and Google are doing the same. On the other, internal friction (Wang vs. Cox/Bosworth) and budget cuts to Reality Labs raise red flags.

Investors love the narrative of AI dominance, but the reality is messy. The recent 1.2% drop after Bloomberg’s closed-AI report shows sentiment is fragile. If Meta’s AI outperforms rivals, the $700+ calls could fly. But if execution stumbles, the $600 put wall might not hold.

Trade Ideas: Calls for the Bold, Stock for the Patient

For options traders:

• Aggressive Play: Buy META20251219C700 (next Friday expiry) at $650.58. Target $700+ if the AI hype translates to earnings.
• Cautious Play: Sell covered calls at META20251219C670 to collect premium while capping upside.

For stock investors:

• Entry: Consider buying near $647 (intraday low) if the 30D support at $608.65 holds.
• Targets: First resistance at $675 (200D MA), then $700 (call cluster).
• Stop: Below $630 triggers a reevaluation—those puts might get busy.

Volatility on the Horizon: Balancing Optimism and Caution

Meta’s story is a rollercoaster. The options market is pricing in a $700+ move, but the RSI at 70.63 warns of overbought conditions. Bollinger Bands show the stock is trading near the middle band, suggesting a breakout is coming—either up or down.

Bottom line: This is a high-conviction trade. If Meta’s AI wins the race, the $700+ calls could pay off handsomely. But if the internal chaos or regulatory risks flare up, the $600 put wall might not be enough. Stay nimble, and keep an eye on that $647 support—it’s the line in the sand.