Meta (META) Options Signal Bullish Bias as AI Acquisition Fuels Volatility – Watch Calls at $675, $685, and Whale Trade at $770

• META drops 1.3% to $651.27, trading below 30D support at $646.45
• Call OI dominates at $675–$685 strikes (10k+ contracts), while puts cluster at $630–$645
• Block trade of 400x $770 calls ($2.37M) hints at aggressive bullish bets

Here’s the thing: Meta’s options market is screaming bullish despite today’s price dip. The call/put imbalance (0.59 ratio) and whale trades scream traders are pricing in a rebound—but the regulatory risks from scam ad scandals could still trip things up. Let’s break it down.

Bullish OI Clusters and Whale Moves Signal AI-Driven Optimism

The options chain is packed with call-heavy action. This Friday’s top OTM calls ($675, $685) have 10k+ open interest, suggesting traders expect a bounce above $650. The $675 strike is especially juicy—it’s just 3.5% above current price, aligning with the 200D MA at $673.21.

But here’s the kicker: a massive block trade of 400x META20260116C770 (expiring Jan 16) moved $2.37M. That’s not just noise—it’s a whale betting Meta could pop to $770 in under two weeks. Why? The $2B Manus AI acquisition is positioning Meta to compete with Google and OpenAI, and the market’s pricing in a tech rebound.

AI Wins vs. Ad Scandals: Which Story Drives Price?

Meta’s AI acquisition is a game-changer. Manus’ autonomous agents could turbocharge Meta’s ad targeting and social commerce—think smarter, more profitable ads. BMO’s $710 price target feels reachable if this tech integrates smoothly.

But the ad scandal is a shadow. Hiding scam ads from regulators isn’t just bad PR—it’s a legal risk. If the SEC cracks down, shares could gap lower. The puts at $630–$645 (next Friday’s OI) show traders are hedging for a worst-case scenario.

Trade Ideas: Calls for the Bull Case, Puts for the Hedge

• Options Play: Buy META20260109C675 (next Friday’s $675 call). If Meta holds above $645 (30D support), this strike could catch fire. Exit at $685 if it breaks.
• Alternative: Sell covered calls against long META shares at $685 (OI: 9287) for premium income if you’re bullish.
• Hedge: Buy META20260109P645 (next Friday’s $645 put) to cap downside risk. The $645 level is a key support zone.
• Stock Play: Buy META near $645–$648 (30D support) with a stop below $643.50 (today’s low). Target $675 first, then $685 if AI hype builds.

Volatility on the Horizon: Balancing AI Hype and Regulatory Risk

Meta’s in a tightrope walk. The AI acquisition is a rocket fuel moment, but the ad scandal could trigger a selloff if regulators act. For now, the options market is pricing in a rebound—calls dominate, whales are betting big, and technicals (MACD above signal line, RSI at 56) suggest a bounce is due.

But don’t ignore the puts. If the ad story resurfaces, $630–$645 could become a bloodbath. Play this smart: go long with calls or stock, but keep a tight stop or a short put hedge. The next two weeks will tell if Meta’s AI gamble pays off—or if the ad mess buries it.

Bottom line: This is a high-reward, high-risk setup. If you’re in, do it with precision and a plan. The market’s leaning bullish, but the path won’t be smooth.