Meta (META) Options Signal Bullish Bias: Avocado AI Hype and $700 Call OI Drive Strategic Entry Points

• META drops 1.36% to $657.72, trading below its 200D MA of $671.38
• Call OI dominance (put/call ratio: 0.57) with 18,829 open contracts at $700 strike (next Friday expiry)
• Block trades show $2.37M bet on META20260116C770, hinting at long-term AI optimism

Here’s the thing: Meta’s options market is screaming bullish while the stock hesitates. Call open interest is concentrated at $700-$750 strikes for next Friday, and block traders are quietly stacking deep-out-of-the-money calls. Combine that with Meta’s AI pivot and metaverse cost-cutting, and we’ve got a setup that feels like a pre-rally warm-up.

Bullish OI Clusters and Whale Moves: What’s Cooking at $700?

The next Friday options chain is packed with call-heavy energy. At 18,829 open contracts, the $700 strike is the gravitational pull for retail and institutional buyers alike. That’s not just noise—it’s a price level where collective hope is crystallizing. Meanwhile, the $1,000 call has 15,054 open contracts, showing some wild-eyed optimism for a post-Avocado breakout.

But don’t ignore the block trades. The $2.37M bet on META20260116C770 (Jan 16, 2026 expiry) is a long-term call that whispers: "We believe in Meta’s AI story beyond next quarter." Contrast that with the recent sell calls at $780-$800 (expiring Nov 21), which might signal profit-taking from earlier AI hype.

Avocado AI and Metaverse Cuts: Fuel for the Bull Case

Meta’s pivot to closed-source AI with Avocado is a game-changer. Paying $14.3B for Scale AI’s Alexandr Wang? That’s not just hiring—it’s a declaration of war on OpenAI and Google. The EU ad flexibility and 3% EssilorLuxottica stake also hint at diversification. But here’s the kicker: investors are pricing in a transition, not a collapse. The stock’s 43.3% operating margin still makes it the cheapest of the Magnificent Seven.

The metaverse cuts ($20B loss in 2025) are a relief, not a tragedy. Redirecting cash to AI and ads? That’s exactly what Wall Street wants. And with CapEx guidance raised to $70–72B, Meta’s spending shows no signs of slowing down—just shifting priorities.

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

If you’re bullish but cautious, buy the META20251219C670 (Dec 19 expiry). At $657.72, this call gives you leverage if the stock breaks above its 200D MA ($671.38). The RSI at 73.45 suggests overbought territory, but the Bollinger Bands (upper at $677.77) could act as a magnet.

For stock players: Consider entry near $653.34 (today’s intraday low) if support holds. Target $677.77 (upper band) or $700 (call OI hotspot). A breakdown below $611.91 (30D support) would flip the script—sell the META20251219P650 put spread to hedge downside.

Volatility on the Horizon: Avocado’s Q1 2026 Debut

The real fireworks start in January 2026. Avocado’s launch could be the catalyst to break the $700-$750 ceiling. But until then, the stock is dancing between short-term bullish momentum and long-term range-bound skepticism. Keep an eye on the $664.48 intraday high—it’s a psychological level that could either hold or crumble under call buying pressure.

Bottom line: Meta’s options market is betting on a comeback story. The AI pivot and metaverse pivot give it legs, but the $700 strike isn’t just a number—it’s a test of whether investors will follow the money into Meta’s next act.