Meta (META) Options Signal Bullish Bias: Key Strike Levels and Trading Setups for 2026

• META trades at $655.33, down 1.2% from its previous close, but call open interest dwarfs puts (put/call ratio: 0.58).
• Heavy call open interest at $675 and $665 strikes for this Friday’s expiry suggests a near-term bullish bias.
• A $770 call block trade (META20260116C770) hints at institutional confidence in a potential rebound.

Here’s the takeaway: Meta’s options market is leaning hard into a bullish narrative, with technicals and options data aligning for a potential rebound. But the stock’s recent pullback and AI spending concerns mean you’ll need to balance optimism with caution.

Bullish Sentiment in the Options Chain: Calls Dominate, Puts Hedge Uncertainty

The options market is clearly leaning bullish. For this Friday’s expiry (Jan 2, 2026), the top call strikes at $675, $665, and $700 have combined open interest of over 20,000 contracts. That’s not just noise—it’s a signal that traders expect META to reclaim its 52-week high of $715.32 before year-end. The $675 strike, in particular, sits just above the 20-day moving average (655.80) and within the upper Bollinger Band (675.09), making it a psychological hurdle for short-term buyers.

Puts aren’t ignored, though. The top put strikes at $650 and $630 have open interest of 3,261 and 3,107 contracts, respectively. These strikes align with key support levels (30D support: 646.45–648.14). Think of it this way: bulls are betting on a rebound, while bears are hedging a breakdown. The 0.58 put/call ratio (for open interest) isn’t extreme, but it’s low enough to suggest a lack of fear—so far.

Block trades add intrigue. The largest one, a 400-lot of the META20260116C770 call (expiring Jan 16), suggests big players are eyeing a sharp rally. That $770 strike is 17.5% above the current price—aggressive, but not impossible if AI-driven ad growth accelerates.

News Flow: AI Ambition vs. Capital Expenditure Concerns

Meta’s recent headlines are a mixed bag. On one hand, the company’s AI roadmap—Avocado, Mango, and Ray-Ban AI glasses—has analysts bullish on long-term growth. On the other, $70–72 billion in 2025 CAPEX and insider sales (like COO Javier Olivan’s $334K exit) have investors wary of a repeat of the 2021–2022 metaverse spending overruns.

Here’s the twist: options data and news aren’t at odds—they’re in dialogue. The call-heavy options chain reflects confidence in CEO Mark Zuckerberg’s ability to execute on AI, while the puts and CAPEX concerns act as a reality check. Jim Cramer’s recent defense of Zuckerberg (“I never like to bet against him”) adds a layer of narrative support for bulls.

Actionable Trading Setups: Calls for the Near Term, Stock for the Long Game

For options traders: Target the META20260109C655 call (expiring Jan 9). At $655.33, the stock is hovering near this strike, and the 30D moving average (639.72) provides a floor. If META holds above 646.45 (30D support), this call could gain steam as volatility rises ahead of earnings. For a higher-risk play, the META20260116C770 call is a speculative bet on a breakout—ideal if AI ad tools like GEM deliver stronger-than-expected results.

For stock investors: Consider entry near $646.45 if support holds. That’s the lower end of the 30D support range. A successful rebound would target the upper Bollinger Band at $675.09 first, then the 200D resistance (747.25–753.36). A breakdown below 636.51 (lower Bollinger Band) would force a reevaluation, but the RSI at 44.28 suggests oversold conditions aren’t imminent.

Volatility on the Horizon: Navigating Meta’s 2026 Crossroads

The coming weeks will test Meta’s resolve. A strong Q4 earnings report or a positive AI model rollout (like Avocado) could fuel a rally. But if CAPEX concerns linger or AI monetization falters, the stock could retest 630–620 levels. Your edge? The options market is already pricing in a bullish outcome—so position accordingly, but keep a leash on risk. After all, even Zuck can’t defy gravity forever.