Meta (META) Options Signal Bullish Bias: Key Strike Levels and AI-Driven Opportunities

• META surges 2.5% to $665.86, testing 50-day MA amid short-term bearish technicals.
• Call open interest dominates at $700 strike, while puts cluster at $600—put/call ratio hits 0.6.
• Block trades hint at big money bets on AI turnaround, but Yann LeCun’s exit adds uncertainty.

Here’s the takeaway: Meta’s options market is leaning bullish, with heavy call volume at key strikes and block trades suggesting confidence in AI-driven recovery. But short-term technicals and news about leadership shifts mean traders need to balance optimism with caution.

What the Options Chain Reveals About Market Sentiment

Let’s start with the numbers. This Friday’s options chain shows calls at $700 (OI: 18,461) and puts at $600 (OI: 15,995) as the most watched strikes. That’s a classic “bull trap” setup—traders are pricing in a potential rebound to $700 but hedging against a drop to $600. The put/call ratio of 0.6 (calls > puts) reinforces the bullish tilt, though it’s not extreme enough to signal a bubble.

Block trades add intrigue. The META20260116C770 call block (400 contracts, $2.37M turnover) suggests big money is betting on a 2026 rebound. Meanwhile, recent sell calls at $780 and $800 (expiring Nov 21) imply short-term bearishness—maybe a hedge against near-term volatility from LeCun’s exit.

News That Could Shift the Narrative

Meta’s AI story is both a tailwind and a headwind. BofA’s $810 price target and Yann LeCun’s new $3.5B AI startup (AMI Labs) highlight long-term potential, but his departure raises questions about Meta’s execution. The £9.99 link-sharing subscription test also signals a pivot to monetization—good for revenue, but bad for user trust if overdone. Traders need to watch how these stories play out: AI optimism could push META above $700, but subscription fatigue might drag it back to the 200-day MA ($671).

Actionable Trade Ideas for Today

For options traders, the most compelling setup is a buy-to-open call at $700 (META20251219C700) if META breaks above $670 (intraday high). The strike is heavily contested (OI: 18,461), so a breakout could trigger a cascade of stop-loss orders. For a conservative play, consider a bull call spread using $670 (strike with OI: 10,558) and $700. If you’re bearish, the META20251219P630 put (OI: 6,185 next Friday) offers downside protection if the stock dips below $640.

For stock traders, here’s the plan:

• Entry: Buy META near $665–$668 if it holds above the 30-day support ($646.45).
• Target: Aim for $688 (upper Bollinger Band) if AI optimism takes hold.
• Stop: Exit below $656 (intraday low) to avoid a breakdown.

Volatility on the Horizon

The next 72 hours will be critical. If Meta’s AI roadmap announcement (rumored for Dec 20) aligns with BofA’s bullish thesis, the $700 call strikes could explode in value. But watch for profit-taking if the stock consolidates between $640 and $680—the 200-day MA is a psychological battleground. Either way, the options market has already priced in a binary outcome: AI success = $800+, or leadership doubts = $600 support test. Your job? Pick your side—and manage risk like it’s a high-stakes poker hand.