Meta (META) Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones

• META trading at $667.54, up 0.39% with a short-term bullish Kline pattern and a '看涨吞没' candlestick signal.
• Call open interest dominates at $700 and $690 strikes (OI: 13,293 and 11,804), while puts cluster at $630 (OI: 6,075).
• Block trades show large-scale call selling at $780 and $800 strikes, hinting at potential profit-taking ahead of regulatory risks.

The options market is whispering 'upside' louder than the news cycle. With a 0.58 put/call OI ratio and bullish momentum indicators, META looks primed for a breakout—despite Italian regulators clashing with its AI strategy. Let’s break down why this setup matters for traders today.Bullish OI Clusters and Whale Moves: A Tale of Two Strikes

Call open interest is piling up at the $700 and $690 levels for Friday expiration, suggesting institutional players are hedging for a mid-7% rally. The $700 strike (META20251226C700) has 13,293 contracts in play, nearly double the nearest put. This isn’t just noise—it’s a vote of confidence in META’s ability to outperform near-term headwinds.

But don’t ignore the puts. The $630 strike (OI: 6,075) acts as a psychological floor. If the stock dips below its 200D MA ($671.78), that level could trigger a rebound. The block trade selling $780 calls (META20251121C780) in November adds intrigue—someone’s betting against a sharp post-earnings pop, but the recent OI shift tells a different story.

Regulatory Headlines vs. Options Sentiment: A Contradiction in Motion

Italian regulators forcing WhatsApp to open its AI chatbot API to rivals like ChatGPT sounds bad. But here’s the twist: The options market isn’t pricing this as a catastrophe. The 0.58 put/call OI ratio (calls: 1.72M vs. puts: 998K) suggests traders expect Meta’s AI dominance to weather this storm. Think about it—Meta’s AI division is just 5% of revenue. The real risk isn’t the headlines but the perception of weakened control over its ecosystem.

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options players, the META20251226C700 call (Friday expiry) offers a high-conviction play. With the stock trading at $667.54, this $32.50 out-of-the-money strike has 3 days to close above $700—a 4.9% move. If you prefer time, the META20260102C700 (next Friday) gives you a week to ride the trend. Both benefit from rising volatility as the MACD histogram (2.86) shows accelerating momentum.

Stock buyers should target $648.14 (30D resistance) as a low-risk entry. Stop-loss below $646.45 would validate the breakdown. On the upside, the 200D MA at $747.25 acts as a dynamic target—though that’s a 12% stretch. A safer play? Buy the dip near $630 if RSI (61) holds above 50.

Volatility on the Horizon: Balancing Risk and Reward

This isn’t a one-way bet. The Bollinger Bands (Upper: $674.58, Lower: $630.92) frame a $43.66 trading range. If the stock breaks above $674.58, watch for a retest of the 100D MA ($705.52)—a level that could trigger a wave of covered call unwinding. But with MACD (3.22) and RSI (61) in neutral-to-bullish territory, the bias remains clear: price the AI future, not the regulatory present.

Final Takeaway

Meta’s options market is painting a picture of cautious optimism. The call-heavy OI at $700+ and bullish technicals suggest a short-term target near $700, while the block trades hint at profit-taking above $750. For traders, this is a setup to play the trend, not the news. If you’re long, protect with a $630 put (META20251226P630). If you’re short, reconsider—this stock isn’t giving up its 52-week high without a fight.