Meta (META) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $700+ Target as AI Strategy Shifts Take Hold

• Meta’s stock trades at $652.66, down 0.65% from its 52-week high of $711.96, with RSI near overbought territory (70.63).
• Options market shows a 0.576 put/call open interest ratio, with heavy call OI at $700 (next Friday’s expiry) and block trades hinting at institutional positioning.
• Meta’s pivot to closed AI models and VR price hikes could drive volatility, but internal strategic conflicts remain a wildcard.

Here’s the thing: Meta’s options market is screaming bullish right now. Calls dominate open interest, with the most attention at $700 strikes expiring Dec 19. Combine that with technicals showing a short-term uptrend and a RSI primed for a pullback, and the setup feels like a coiled spring waiting to snap. Let’s break it down.

The Call-Put Imbalance and Block Trades: A Playbook for $700+

The options chain is a goldmine of insight. For this Friday’s expiry, $690 and $700 calls lead open interest, but the real story is next Friday’s $700 strike (OI: 18,171). That’s not just noise—it’s a crowd betting on a $700+ move. Meanwhile, puts are sparse, with the top OTM puts at $600 and $650. The 0.576 put/call ratio? A clear tilt toward bullish bets.

But don’t ignore the block trades. The $2.37M trade in META20260116C770 (a January 2026 call) and multiple large sell calls at $780 and $800 (expiring Nov 21) suggest big players are hedging or locking in profits. Yet the $700 call OI keeps climbing—this feels like a race between short-term optimists and long-term pragmatists.

AI Strategy Shifts: Fuel for the Fire or a Speedbump?

Meta’s pivot to closed AI models (like "Avocado") and partnerships with publishers is a big deal. Investors love monetizable tech, and the stock’s 1.2% drop after the Bloomberg report might have been a buying opportunity. But here’s the catch: internal tensions between Alexandr Wang’s TBD Lab and traditionalists like Andrew Bosworth could slow execution. If the AI pivot works, $700+ is plausible. If it falters, watch the 200-day MA at $671.33 for support.

Actionable Trades: Calls, Breakouts, and a Bearish Hedge

For options traders, the META20251219C700 (Dec 19 $700 call) is a no-brainer if Meta breaks above today’s intraday high of $654.51. The $700 strike is 7.4% out of the money, but with the stock near its 30D MA ($637.91) and Bollinger Bands squeezing, a breakout feels inevitable. For stock players, consider entries near $611.90 (30D support) with a target at $700. Stop-loss below $647.31 (today’s low) would protect against a breakdown.

But don’t ignore the risk. If Meta’s AI strategy stumbles or VR price hikes backfire, the META20251219P600 (Dec 19 $600 put) offers a bearish hedge. It’s a 7.8% OTM play with decent liquidity (OI: 12,506). A put spread between $600 and $650 could cap losses if the stock gaps down.

Volatility on the Horizon: Balancing Optimism and Caution

Meta’s in a tightrope walk. The options market is pricing in a $700+ move, but the stock’s long-term MA at $711.96 (100D) and $671.33 (200D) suggest it’s still in a trading range. The key is execution: if the AI pivot delivers, this could be a base camp for a new bull run. If not, the stock could retest $608.65 (30D support) or worse. Either way, the next two weeks—especially with expiry on Dec 19—will be critical. Keep an eye on the $650 psychological level and those block trades. They’re telling a story, and it’s not over yet.