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

• Meta’s stock surges 1.67% to $672.61, trading above its 200-day moving average of $671.57.
• Options data shows heavy call open interest at $675–$700 strikes, with a put/call ratio of 0.57 (calls dominate).
• Recent AI partnerships with CNN, Fox News, and USA Today could fuel near-term momentum.

Here’s the core insight: Meta’s options market and technicals are painting a bullish picture, but traders need to watch for overbought conditions and key support/resistance levels. The stock is perched near a potential breakout zone, and the options flow suggests institutional bets on a push above $680. Let’s break it down.

Bullish Sentiment in Options and Block Trades

The options chain tells a clear story: traders are piling into calls above $675. For Friday’s expiration, the META20251212C675 and META20251212C680 strikes have the second- and third-highest open interest, respectively. This suggests a consensus that Meta could test $680–$690 before year-end. Meanwhile, the put/call ratio of 0.57 (calls outweigh puts by ~74%) reinforces the bullish bias.

But don’t ignore the risks. The META20251212P630 and META20251212P650 puts have significant open interest, hinting some players are hedging against a pullback. And the block trades—like the META20260116C770 call with $2.37M turnover—signal long-term conviction. However, the META20251121C780 and META20251121C800 calls were sold in bulk recently, which could mean profit-taking or hedging by existing holders.

AI News Fuels the Narrative

Meta’s AI partnerships with major publishers are more than PR fluff—they’re strategic moves to boost its chatbot’s real-time relevance. This could drive user engagement and justify higher multiples for the stock. The metaverse spending cuts (potentially $4–6B in savings) add another layer: capital reallocation to AI could supercharge growth narratives.

But here’s the catch: The $30B Louisiana data center project raises questions about AI cost sustainability. If markets start pricing in an AI bubble, volatility could spike. For now, though, the news flow aligns with the options-driven bullish case.

Actionable Trade IdeasOptions Play: Buy the META20251212C680 calls (Friday expiration) if Meta holds above its intraday low of $662.42. The RSI at 70.25 is overbought, so a pullback to $665–$670 could offer a better entry. Alternatively, consider a call spread: buy META20251212C680 and sell META20251212C700 to cap risk while profiting from a $685–$690 move.Stock Play: Enter near $662–$664 if support holds. Target $685–$690 as the first resistance cluster (aligned with the 680/700 call strikes). Place a stop-loss below $650 (lower Bollinger Band) to protect against a breakdown. For aggressive traders, a breakout above $674.69 (intraday high) could trigger a run toward $700.Volatility on the Horizon

The next 72 hours will be critical. If Meta closes above $680 this week, the 200-day moving average ($671.57) turns into support, and the $700 level becomes a psychological hurdle. Conversely, a drop below $650 would invalidate the bullish case and open the door for a test of the 30D support at $608.65. Either way, the options market is pricing in a directional move—now it’s up to fundamentals and sentiment to decide which way.

Stay nimble. The AI narrative is still in its early innings, and Meta’s stock has the potential to surprise both ways.