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

• Meta’s options market shows a 0.57 put/call open interest imbalance, with heavy call OI at $700 and $670.
• Block trades reveal 400 contracts sold on the $770 call for Jan 16, hinting at strategic positioning.
• AI software updates and AI model launches could fuel momentum, but $670-675 resistance looms.

Here’s the takeaway: Meta’s options activity and technicals align on a short-term bullish bias. The stock is testing a rising trendline at $648 while AI-driven news and call-heavy positioning suggest a push toward $670+—but watch for volatility if it falters near key support.

Bullish Sentiment in Options and Block Trades

Meta’s options market is clearly leaning bullish. This Friday’s top call open interest piles up at $700 (OI: 13,390) and $670 (OI: 10,904), while puts trail at $630 (OI: 6,311) and $660 (OI: 4,019). The 0.57 put/call ratio (by OI) means traders are betting more on upside.

But it’s not just retail money—block trades tell a story. A 400-lot sale on the META20260116C770 call (expiring Jan 16) suggests institutional players are hedging or locking in profits above $770. Meanwhile, older block trades like the META20251121C780 (sold 300 contracts) hint at profit-taking after recent AI hype.

The risk? Heavy call OI at $670-700 could create a self-fulfilling prophecy. If the stock breaks $670, those strikes might see aggressive buying. But if it stalls, the $660 put (OI: 3,028) could see action as a hedge.

AI News and Analyst Rivalry: Fuel or Frenzy?

Meta’s recent software update for AI glasses and expansion of Instagram Reels to TV screens is a solid catalyst. The “conversation focus” feature and Spotify integration could drive user engagement, but Morgan Stanley’s trimmed $750 price target (from $820) shows skepticism about execution.

Analysts are split: Baird’s Colin Sebastian calls Meta a “battleground” stock for 2026, citing AI model launches and monetization of WhatsApp/Threads. Yet others worry about AI infrastructure costs and regulatory risks. The stock’s 11% rebound in a month suggests optimism, but the 38% profit margin and 22 P/E ratio still look stretched if growth slows.

Actionable Trades: Calls for the Bull, Puts for the Cautious

For options traders, the META20260102C670 call (expiring next Friday, Jan 2) is a sweet spot. With OI at 2,916 and the stock trading near $663.50, a breakout above $670 could trigger a rally toward $680-700. If you’re bullish but cautious, pair it with the META20260102P660 put (OI: 3,028) to cap downside risk.

Stock traders should eye $648 as a key support level (30D support). A close above $665.14 (intraday high) would validate the bullish case, with $670-675 as the next target. A breakdown below $646.45 (200D support) would force a reevaluation—look to exit longs or add puts there.

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

Meta’s options and fundamentals are in a tug-of-war. The AI software updates and block trades favor bulls, but technical resistance and analyst caution add friction. If the stock holds $648 and breaks $670, the $700 call OI could ignite a rally. But if it fails to hold support, the $630-650 range might see a pullback. Either way, the next 10 days (through Jan 2 expiration) will test whether Meta’s AI bets translate to sustained momentum—or fade into noise.