Meta (META) Options Signal Bullish Bias Amid AI Play, But Watch $670 Call Wall

• Meta’s stock jumps 1.57% to $669.12, trading above its 200-day moving average of $671.26.
• Options data shows a 0.58 put/call open interest ratio, with heavy call buying at $700 and $680 strikes.
• Block trades hint at bearish hedging, while a new AI-powered AR headset could drive long-term optimism.

Here’s the thing: Meta’s options market is screaming bullish—but with a twist. The stock’s 1.57% intraday gain and MACD crossover above zero suggest a short-term rally, yet the call-heavy open interest at $700 and $680 hints at a potential wall of resistance. Let’s break down what traders should watch today.

Bullish Calls Dominate, But Block Trades Signal Caution

The options chain is a mixed bag. For this Friday’s expiry, the $700 call (OI: 10,567) and $680 call (OI: 8,158) lead the pack, showing heavy speculative bets on a near-term pop. The put side is quieter, with the $630 put (OI: 5,870) as the only notable downside hedge. But here’s the catch: block trades like the META20260116C770 call (sold for $2.37M) and massive call sales at $780 and $800 strikes suggest institutional players are hedging against overbought conditions.

The put/call ratio of 0.58 (calls dominate) isn’t just noise—it’s a signal. Retail traders are pricing in a breakout above $673.58 (today’s high), but the 200-day MA at $671.26 and Bollinger Band upper bound at $683.28 could act as a ceiling. If the stock cracks $680, the $700 calls might ignite a parabolic move… or trigger profit-taking.

AI Headset Hype vs. Earnings Woes: What’s Driving the Narrative?

Meta’s recent news is a tug-of-war. The Q4 earnings miss (12% revenue drop) and EU fine ($2.7B) have analysts scrambling, but the new Meta Vision X AR headset and CTO appointment by Dr. Priya Shah are long-term bullish catalysts. The stock’s 7% post-earnings drop has created a buying opportunity for those betting on the AI rebound.

Here’s the rub: the market is pricing in the AI narrative but discounting the near-term pain. The $1.2B cost-cutting plan and user attrition (2.1B daily active users) are real risks. If the Vision X rollout hits its $4.5B revenue target by 2027, the stock could re-rate. But until then, the 57 RSI and 100-day MA at $707.49 feel like a distant dream.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders, the META20260102C670 call (next Friday expiry) is a sweet spot. At $669.12, the stock needs a 0.9% move to touch $670—manageable given the bullish MACD and RSI neutrality. If you’re bearish, the META20260102P650 put (OI: 2,147) offers downside protection below $646.80 (30D support).

Stock traders: Consider entries near $646.80 if the 200DMA holds. A break above $673.58 (today’s high) targets $683.28 (Bollinger upper band). But if the stock dips below $646.80, tighten stops and eye the $630 put wall as a potential floor.

Volatility on the Horizon: Balancing AI Hope and Earnings Reality

The next two weeks will test Meta’s resolve. The AI headset launch in Q1 2026 is a golden ticket, but the earnings-driven sell-off and EU fine could keep the stock range-bound until then. Traders should watch the $670–$680 range like hawks—breakouts could validate the bullish case, while a retest of $646.80 would force a reassessment.

Bottom line: This is a stock at a crossroads. The options market is pricing in a short-term rally, but the fundamentals demand caution. Play it smart—hedge your bets, keep stops tight, and let the AI story unfold.