Meta (META) Options Signal Bullish Bias: Key Strikes and Block Trades Point to $700+ Upside Potential

• Meta’s Q3 revenue smashed estimates at $35.6B, with AI-driven ad tools and a new chatbot boosting growth.
• Options data shows heavy call open interest at $700 and $750, while block trades hint at institutional positioning.
• RSI near overbought levels and a bullish MACD histogram suggest short-term momentum, but Bollinger Bands warn of volatility.

Here’s the core insight: Meta’s options market is pricing in a strong upside bias, with call dominance and block trades pointing to a potential push toward $700. But the stock’s position near its 200D moving average means caution is still warranted. Let’s break it down.

Bullish Calls Dominate, Block Trades Signal Strategic Moves

The options chain tells a clear story: traders are betting on a rebound. For this Friday’s expiration, the $675 and $700 calls have the highest open interest, while next Friday’s $700 and $750 calls (OI: 18,477 and 14,654) show even stronger positioning. That’s not just noise—it’s a vote of confidence in Meta’s near-term trajectory.

But don’t ignore the puts. While call OI outpaces puts (0.566 ratio), the $600 puts (OI: 11,649 for next Friday) act as a safety net for those hedging against a drop below key support. The block trades add intrigue: a $2.37M sale of the META20260116C770 call and multiple large call sales in September and November suggest some players are locking in gains or hedging long-term bets.

News Flow Fuels Optimism, But Risks Lurk in the Metaverse

Meta’s recent headlines are a mixed bag. The $35.6B revenue beat and AI chatbot launch are tailwinds, and the $10B buyback is a shareholder-friendly boost. But the $2B metaverse loss and EU data privacy scrutiny add friction. Retail investors might be buying calls on the earnings pop, but institutional players could be wary of the metaverse’s drag on profits.

The key question: Will the AI-driven ad growth offset the metaverse burn? For now, the market seems to think it will—but that’s a bet on execution, not just innovation.

Actionable Trade Ideas: Calls for the Bullish, Puts for the Cautious

For options traders:

• Buy the META20251219C675 call (next Friday’s $675 strike). With the stock trading near $669, a break above $675 could trigger a rally toward the $700 OI cluster.
• Sell the META20251219P660 put if you’re bullish but want to hedge. A drop below $665 (intraday low) could test support, but the 30D support at $608.65 is a longer-term floor.

For stock traders:

• Enter long near $665 if the price holds above the intraday low. Target $690 (upper Bollinger Band) or $700 (call-heavy zone).
• Set a stop-loss at $650 to protect against a breakdown.

Volatility on the Horizon: Balancing Optimism with Caution

Meta’s technicals and options data align for a short-term bullish case, but the long-term story is murkier. The 200D moving average at $671.47 is a psychological hurdle—break it, and the $747 resistance zone looms. Conversely, a close below $623.78 (middle Bollinger Band) would signal a shift in momentum.

In the end, this is a stock caught between growth and reinvention. The AI bets are paying off, but the metaverse’s financial drag and regulatory risks can’t be ignored. For now, the market’s pricing in a $700+ finish—but that’s a tightrope walk, not a sure thing.