Meta (META) Options Signal Aggressive Bullish Play: 30% Open Interest at $700 Calls as Metaverse Cuts Spark Rally

• META surges 3.8% to $664.00 amid metaverse budget cut news
• Call open interest dominates at $675–$700 strikes, with 9,182 contracts at $675
• Block trades show 400-lot call block at $770 expiring Jan 2026

Here’s the takeaway: Meta’s stock is dancing on a tightrope between bullish options positioning and a strategic pivot in its metaverse bets. The data screams upside potential for now—call options are stacking up like bricks at key resistance levels, while the stock’s 3.8% intraday gain suggests short-term buyers are in control. But let’s dig into why this could be a high-conviction trade…

Bullish Sentiment Locked in at $675–$700 Strikes

The options market isn’t whispering—it’s shouting. For Friday’s expiration (Dec 5), META20251205C675 has 9,182 open contracts, and META20251205C700 has 6,035. That’s not just noise; it’s a crowd of traders betting Meta will punch through $675 and test $700. The put/call ratio of 0.56 (calls > puts) reinforces this bias.

But don’t ignore the risks. The 200-day Bollinger Band upper bound sits at $657.97, and the stock is already above it. If Meta can’t hold $660.11 (today’s low), the 30D support zone of $608.65 could become a battleground.

Block trades add intrigue. A 400-lot call block at META20260116C770 ($770 strike, expiring Jan 16, 2026) suggests big players are hedging or positioning for a long-term rally. Meanwhile, recent sell calls at $780 and $800 (expiring Nov 21) hint at profit-taking from earlier bullish bets.

Metaverse Cuts: A Paradox for Bulls

Meta’s decision to slash 30% of its metaverse budget is a mixed bag. On one hand, it signals a pivot away from cash-burning VR projects—a move that’s already boosted shares 5.5% premarket. On the other, it raises questions about long-term innovation.

But here’s the twist: Investors are treating this as a short-term win. The stock’s surge aligns with options activity, as traders bet Meta’s cost-cutting will stabilize its balance sheet. The hiring of Apple’s Alan Dye to lead AI design adds a layer of optimism—this isn’t just about trimming fat; it’s about reallocating resources to high-impact areas.

Actionable Trades for Today

For options traders, the most compelling plays are:

• Buy-to-open META20251205C675 (Dec 5 expiration): With 9,182 contracts in open interest, this strike is a magnet for liquidity. Target a 3–5% move above $675 by Friday.
• Buy-to-open META20251212C700 (Dec 12 expiration): If Meta holds $660, this next-week call offers leverage on a breakout.

For stock traders, consider:

• Entry near $660.11 (today’s low) if the 30D support of $608.65 holds. Target $685 as a near-term ceiling, with a stop-loss below $650.
• Bearish hedge: Buy META20251205P630 if Meta dips below $660. The 4,918 open puts at this strike could catch a pullback.

Volatility on the Horizon: Balancing Bullish Momentum and Structural Risks

The next 72 hours will test Meta’s resolve. A close above $676.1 (today’s high) would validate the bullish case, while a drop below $619.78 (middle Bollinger Band) could trigger panic. The 200D moving average at $671.78 is a psychological hurdle—hold that, and the $700 calls become a realistic target.

But don’t get greedy. The 200D resistance zone of $747.25–$753.36 looms large. If Meta’s AI pivot underwhelms, this rally could fizzle. For now, though, the options market and stock price are in sync—this is a trade worth watching closely.