Meta (META) Options Signal Bullish Bias: 700-Call OI Surge and AI-Driven Breakout Potential

• Call open interest spikes at $700 strike for Friday expiration, with 10,567 contracts outstanding.
• Block trades hint at big money bets: A $770 call with $2.37M turnover suggests aggressive bullish positioning.
• Put/call ratio at 0.58 (calls dominate) aligns with technicals showing a short-term bullish pivot.

Here’s the takeaway: Meta’s options market is whispering a breakout story. With calls outpacing puts by nearly 2:1 and heavy positioning above $680, the crowd is pricing in a near-term rally. Combine that with Meta’s AI-driven fundamentals, and the setup feels like a loaded spring—waiting for the right catalyst.

Bullish OI Clusters and Whale Moves

The options chain tells a clear story: traders are stacking up for a move above $680. This Friday’s $700 call ($META20251226C700) leads the pack with 10,567 open contracts, followed by the $680 and $670 strikes. That’s not random—it’s a vote of confidence. The histogram on the MACD (3.05) and RSI (57.27) both suggest momentum is building, especially as price tests the upper Bollinger Band ($683.28).

But don’t ignore the block trades. The $META20260116C770 call saw a $2.37M trade last week—enough to move the needle. That’s not retail noise; it’s institutional positioning for a January 16th expiration. If Meta’s AI models (Mango, Avocado) deliver as promised, these whales could be hedging a big move.

News That Fuels the Fire

Meta’s recent headlines are a goldmine for bulls. The company just announced closed-source AI models targeting enterprise workflows and ad personalization. Think of it like this: GEM (their new ad model) is the engine, and Mango/Avocado are the wheels. Together, they could turbocharge revenue growth in 2026. Analysts are already penciling in a $840 price target, with some seeing 70% upside.

But here’s the catch: execution matters. The news about VR staying "not dead" and metaverse bets is positive, but it’s still a long game. The real fireworks come from AI—where Meta’s $14.3B investment is starting to show teeth. If the market buys into this narrative, the $680-$700 resistance could crumble like a house of cards.

Trade Ideas: Where to Put Your Chips

For options players, the $META20251226C700 call (expiring Friday) is a high-conviction play. With the stock trading at $659.96, a move to $680 would cover the strike and give you a 3% gain in four days. If you want a longer runway, the $META20260102C675 call (next Friday) offers leverage on the AI rollout. Both are sitting in high-traffic zones.

Stock traders: Consider entry near $657.33 (today’s intraday low) if support holds. Your first target is $673.58 (today’s high), then push toward $683.28 (upper Bollinger Band). A breakdown below $646.79 (middle Bollinger) would flip the script—so keep a tight stop there.

Volatility on the Horizon

The next 72 hours will be critical. Meta’s AI roadmap is a $14.3B bet, and the market is watching for proof of concept. If the $700 calls get assigned, we could see a short squeeze as institutions cover their positions. But don’t get greedy—this is a momentum play, not a long-term hold. The key is to ride the wave before the 200-day MA (747.25) starts to drag things back down.

Bottom line: Meta’s options market is pricing in a breakout. The AI news gives it legs, and the technicals are primed for a rally. But keep your eyes on the $646.79 support line—it’s the last line of defense before this trade turns south.