Meta (META) Options Signal Bullish Bias: Key Call Strikes and Block Trades Highlight $675–$700 Breakout Potential

• META trades at $664.13, down 0.5% from open, with 2.57M shares traded. • Put/Call OI ratio at 0.58 suggests strong near-term bullish positioning. • Block trades hint at whale activity above $770 strike price.

Here’s the core insight: Meta’s options market is pricing in a high-probability move above $675 in the next 7–14 days, driven by heavy call open interest at key strikes and institutional block trades. The technicals and news flow align with this bias, but risks below $650 remain.

Bullish Imbalance in Call Options and Whale Moves

Options data tells a clear story: traders are stacking up calls at $670–$700 strikes for both this Friday (Dec 26) and next Friday (Jan 2). The $700 call (META20260102C700) has 11,091 open contracts, while the $675 call (META20260102C675) sits at 7,069 OI. This concentration suggests a consensus that META could test its 200D MA at $747 if it breaks above $675.

Block trades add intrigue. A $2.37M block of 400 contracts for META20260116C770 (expiring Jan 16) hints at institutional bets on a sharp rally. Meanwhile, large sell calls at $780 and $800 strikes (META20251121C780, META20251121C800) indicate hedging by existing bullish positions. The risk? If META fails to hold above $660, the $650–$630 put OI could trigger a short-term selloff.

News Flow: AI Investments vs. Leadership Turmoil

Meta’s AI push is a double-edged sword. The $1B Wisconsin data center and Llama 4 roadmap justify the bullish options flow, but internal strife between Zuckerberg and Alexandr Wang raises execution risks. Institutional investors are betting on the AI narrative—Exchange Traded Concepts LLC boosted its stake by 52.8% in Q3—but insider sales (e.g., COO selling $342K) hint at caution.

Regulatory pressures also loom. EU/India interoperability mandates could dilute WhatsApp’s monetization potential, yet analysts still target $730–$900 for 2026. The key is whether Meta’s $70–$72B capex plan delivers ROI before 2026. For now, the market is pricing in a "Strong Buy" consensus, with AI monetization as the main catalyst.

Actionable Trade Ideas: Calls for Jan 2 and Core Stock Setup

For options: Buy the META20260102C675 at $12.50–$13.50. This strike sits just above the 30D MA ($646) and below the 200D MA ($672). A break above $675 would trigger a move toward $690 (RSI 53.1 suggests room for momentum). Alternatively, sell covered calls at META20260102C700 if you’re long META shares, targeting a $6–$8 premium if the stock holds.

For stock: Consider entries near $654 (middle Bollinger Band) if support holds. A close above $668.94 (intraday high) would validate the bullish case, with first targets at $675 and then $690. Use $648 as a hard stop—break below that and consider shorting the $630–$650 put spread (META20260102P630).

Volatility on the Horizon: Balancing AI Hype and Execution Risks

Meta’s next 14 days will test its AI narrative. A breakout above $675 would validate the block trades and analyst price targets. But leadership instability and regulatory costs could cap upside. The key is watching the $675–$700 call chain for rolling liquidity—if OI grows at $720–$750 strikes by Jan 2, the bull case strengthens. For now, the data points to a high-conviction long trade, but keep a tight stop below $650 to protect against short-term volatility.