Meta (META) Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 26 Expiry

• Current Price Action: META trades at $659.32, up 0.08% with volume surging to 8.77M. Intraday high of $673.58 near 200D resistance.
• Options Imbalance: Call open interest (1.64M) dwarfs puts (952K), with heavy call OI at $700 and $680 strikes.
• Block Trade Alert: A $2.37M block trade in META20260116C770 (Jan 16, 2026 expiry) hints at big money bullish bets.

Here’s the core insight: META’s options market is pricing in a strong upside bias ahead of the Dec 26 expiry, with technicals and news aligning for a breakout above key resistance. But watch for short-term volatility from regulatory risks.Options Imbalance and Whale Moves: A Bullish Playbook

META’s options chain tells a clear story: bulls are stacking up. The top OTM call strikes ($700, $680) have combined OI of 18,725 contracts, while puts at $630 and $590 show defensive positioning. The put/call ratio of 0.58 (for open interest) confirms a clear tilt toward upside bets.

But it’s the block trades that catch attention. The META20260116C770 call (770 strike, expiring Jan 16) saw a $2.37M trade—suggesting whales are hedging or speculating on a 2026 rally. Meanwhile, large sell calls at $780 and $800 (expiring Nov 21) hint at profit-taking from earlier bullish bets.

The risk? If META fails to hold above $646.79 (middle Bollinger Band), the $630 put-heavy zone could trigger a pullback. But with Reality Labs’ Q4 profit and AI-driven ad growth in the headlines, the odds of a sustained rally look strong.News-Driven Momentum: Fueling the Bull Case

META’s recent news flow is a mixed bag but leans positive. The Q4 earnings beat, $10B buyback, and next-gen VR headset launch all support a higher stock price. Reality Labs’ $2.1B profit and 25% YoY growth are particularly bullish for long-term investors.

However, the DOJ’s antitrust probe into AI ad practices adds a wildcard. Retail traders might be hedging with the $650 put (OI: 2,536), but institutional buyers seem unconcerned—call volume at $670 and $680 strikes suggests they’re betting on a post-earnings pop.

Actionable Trade Setups for Dec 26 and Beyond

1. Options Play: Buy META20251226C670 (Dec 26 expiry, $670 strike) if META breaks above $673.58 (intraday high). Target: $683.28 (Bollinger upper band). Stop-loss: $656.65 (intraday low).
2. Stock Play: Enter long near $660 if price holds above 200D MA ($671.26). Target: $680–$690. Use $646.45 support as a stop.
3. Next-Week Strategy: Buy META20260102C675 (Jan 2 expiry, $675 strike) for a longer-term bullish bet. This strike has 6,547 OI and aligns with 200D MA resistance.

Volatility on the Horizon: Positioning for 2026

META’s options activity and fundamentals point to a breakout scenario. The $700 call-heavy zone and block trades in the META20260116C770 suggest big money is pricing in a 2026 rally. But short-term traders should watch the $630–$650 support/resistance cluster.

Bottom line: This is a stock with momentum and catalysts. If you’re in, lock in some calls at $670–$680. If you’re on the sidelines, wait for a pullback to $646.79 before entering. Either way, the next two weeks could be pivotal.