Meta (META) Options Signal Bullish Bias: Calls at $675–$670 Dominate as AI Momentum and Buybacks Fuel Near-Term Upside Potential

• Meta’s price surged to $669.72 (intraday high), outpacing its 200D MA of $671.57.
• Call open interest at $675 and $670 strikes dwarfs put activity, with a put/call ratio of 0.57 (calls dominate).
• Block trades show whales betting on 2026 with a $770 call, while recent EU regulatory risks linger.

Here’s the takeaway: Meta shows upside potential today. The options market is pricing in a near-term rally, supported by AI-driven earnings and a bullish technical setup—but regulatory headwinds could create volatility if the EU issue resurfaces.

Bullish Sentiment Locked in Calls, Whale Moves Signal Confidence

The options chain tells a clear story: traders are piling into calls. This Friday’s $675 (OI: 9,544) and $670 (OI: 9,345) strikes are the most watched, with call dominance extending to next Friday’s $700 strike (OI: 5,545). Puts, meanwhile, are concentrated at lower strikes like $630 (OI: 4,790) and $600 (OI: 2,411), suggesting limited downside conviction. The put/call ratio of 0.57 (calls outweigh puts by ~74%) reinforces this bias.

But it’s not just retail traders driving this. A block trade of 400 contracts for the META20260116C770 call (expiring Jan 16, 2026) moved $2.37 million, hinting at long-term bullish positioning. Conversely, large sell calls like META20251121C780 (300 contracts sold) suggest some profit-taking ahead of expiration. The message? Bulls are stacking up for a push above $680, but caution is warranted if the EU regulatory saga escalates.

Earnings Pop and AI Hype Fuel the Narrative—But Risks Remain

Meta’s Q3 results were a rocket boost: $35.6B revenue (beating estimates) and a $5B AI investment plan sent shares up 8%. The new AI chatbot "Eve" and NeuralLink acquisition add to the hype train. Yet the EU’s metaverse block—a 12% one-day selloff trigger—still looms. While Meta’s buyback expansion and new CFO John Smith (Goldman Sachs alum) signal financial discipline, the regulatory cloud could force a pullback if the EU’s appeal process drags on.

Investor sentiment is split. Retailers love the AI narrative, but institutional investors might be hedging with those $630 puts. The key question: Will the EU issue force a retest of support near $662, or will the AI-driven revenue tailwinds carry the stock higher?

Actionable Trades: Calls for the Bull, Puts for the Cautious

For options traders, the most compelling plays are:

• Buy META20251212C675 (this Friday’s $675 call): With OI at 5,370 and the stock trading near $665, a breakout above $675 could trigger a rally toward $685–$700. Target: $680 (5.5% gain in 3 days).
• Buy META20251212C670 (this Friday’s $670 call): Cheaper premium with similar upside if the stock holds above $662.41 (intraday low today).
• Sell META20251212P630 (this Friday’s $630 put): If you’re bullish but want to hedge, this strike offers downside protection without paying for deep puts.

For stock traders, consider:

• Entry near $664.50 (today’s open) with a target at $675 (Bollinger upper band) and a stop-loss at $662.41. A break above $675 could trigger a retest of the 200D MA at $671.57, then a push toward $685.
• Short-term swing trade: Buy on a pullback to $662–$663 (support zone) with a target at $670–$675. Exit if the stock fails to hold above $665.

Volatility on the Horizon: Balancing AI Optimism and Regulatory Risks

The next 72 hours will test Meta’s resolve. A clean break above $675 could ignite a rally toward $685–$700, especially if the EU appeal is dismissed. But a retest of $662 or a regulatory setback could force a retreat to $650–$640. The 200D MA at $671.57 is a critical line to watch—hold that, and the bullish case remains intact. Break it, and the puts at $630 might get a workout.

Bottom line: This is a high-conviction trade for bulls, but don’t ignore the puts. The AI story is strong, but markets don’t like uncertainty—and the EU issue isn’t going away.