Meta (META) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $670+ Breakout Potential

• Meta’s price action shows a -0.67% dip to $663.05, but technicals hint at a short-term bullish rebound.
• Options data reveals a 0.58 put/call open interest imbalance, with heavy call OI at $700 and $680 strikes.
• Block trades suggest institutional hedging or profit-taking in AI-linked call options ahead of Q1 2026.

Here’s the core insight: Meta’s options market is pricing in a strong bias for a $670+ rebound, supported by technical levels and AI-driven infrastructure bets—even as leadership tensions and regulatory risks linger. Let’s break down why this setup matters for traders today.

Bullish Sentiment in Options: Calls Dominate at Key Strikes

The options chain tells a clear story. For this Friday’s expiration, call open interest peaks at $700 (OI: 11,091) and $680 (OI: 10,532), while puts cluster at $630 (OI: 6,034) and $660 (OI: 5,053). This isn’t just a numbers game—it’s a vote of confidence. Traders are betting on a rebound above the 200-day MA ($672.09) and Bollinger Upper Band ($675.64).

But don’t ignore the risks. The $660–$662.65 price range is critical support. A close below $650 (a key put OI level) could trigger a deeper pullback. Block trades like META20260116C770 (sold for $2.37M) hint at hedging or profit-taking by large players, suggesting caution above $700.

News Flow: AI Ambitions vs. Leadership Friction

Meta’s $1B Wisconsin data center and AI capex bets reinforce long-term bullish fundamentals. Yet internal strife—Zuckerberg’s clash with AI head Alexandr Wang—adds near-term noise. The recent institutional buying by Baxter Bros (3.3% portfolio allocation) counters this, showing confidence in Meta’s AI-driven growth.

Here’s the twist: Regulatory pressures and leadership drama could delay near-term gains, but the $670+ call activity suggests traders are pricing past these risks. If the stock holds above $650, the AI infrastructure narrative could dominate sentiment.

Actionable Trade Ideas: Calls for Breakouts, Puts for Safety

For options traders, consider:

• META20260102C675 (next Friday’s $675 call): A cheaper alternative to $700 strikes if the stock breaks above $668.95 (intraday high).
• META20260102P660 (next Friday’s $660 put): A hedge if volatility spikes below $650.

For stock traders, here’s a setup:

• Entry near $662.65 (intraday low) if support holds. Target $670 first, then $690 (aligning with 200D MA and Bollinger Band).
• Stop-loss below $650 to avoid a breakdown into the $632–$633 lower Bollinger Band.

Volatility on the Horizon: Positioning for Meta’s AI-Driven Crossroads

Meta sits at a crossroads. The options market is pricing for a rebound, but leadership issues and regulatory hurdles could create whipsaw days. The key takeaway? Focus on liquidity-rich strikes like $675 and $660, and let the $662.65 support level guide your entries. If the stock breaks above $670 cleanly, the AI infrastructure bets—and those heavy call positions—could fuel a rally toward $700. But if the $650–$655 zone falters, don’t be surprised to see panic selling in those $630 put contracts.

Either way, the next 72 hours will tell us whether Meta’s bulls can outmuscle the bears—or if this is a setup for a volatile January 2026 showdown.