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

• META trades at $643.94, down 1.34% from its 52-week high of $652.71.
• Call open interest dominates at $670–$700 strikes, while puts cluster near $630–$640.
• A $2.37M block trade in META20260116C770 hints at long-term bullish positioning.

Here’s the core insight: options data and technicals suggest a short-term pullback but a strong case for a $700+ rebound. The stock’s 1.3% drop today masks a deeper story of institutional bets on a near-term rally and a structurally bullish options chain. Let’s break it down.

The Options Imbalance: Calls at $700, Puts at $630 Tell a Tale of Two Scenarios

The options market is split. For this Friday’s expirations, call open interest peaks at $670 (11,377 contracts) and $700 (9,144), while puts top out at $630 (7,750). For next Friday, the $700 call (18,699 OI) and $600 put (15,459 OI) are the most watched. This suggests two camps:

• Bullish camp: Big money is hedging a $700+ move, likely tied to Meta’s AI-driven ad tools and metaverse momentum.
• Bearish camp: Puts at $630–$640 act as a safety net for a potential drop to the 30D support zone ($589–$591).

The 0.58 put/call ratio (call dominance) reinforces the bullish tilt. But don’t ignore the risk: block trades like the 400-lot META20260116C770 ($770 strike) signal a whale-sized bet on a 2026 rally, which could pressure near-term volatility if the stock underperforms.

News Flow: Earnings Beats and AI Hype Outweigh Regulatory Headwinds

Meta’s recent headlines are a mixed bag, but the positives dominate. The $35.5B Q3 revenue beat and $10B buyback have investors salivating. The new AI chatbot Eva and NeuralLink acquisition add long-term value, even if the EU fine is a near-term drag. Here’s the kicker: institutional investors added 15% to their META stakes this week, suggesting they see the regulatory risks as manageable noise. Retail traders might be skittish about the EU penalty, but the broader narrative—AI-driven ad growth and metaverse scaling—is winning the day.

Actionable Trade Ideas: Calls at $700, Stock Buy at $630.64

For options players:

• Buy META20251219C700 (next Friday’s $700 call) if the stock breaks above today’s intraday high of $652.01. The strike is a key psychological level with 18,699 OI backing it.
• Bull call spread: Buy META20251219C670 and sell META20251219C700 to cap risk while profiting from a $670–$700 rebound.

For stock traders:

• Entry near $630.64 (the middle Bollinger Band) if the price holds above the 30D support ($589–$591). Target $670 first, then $690.
• Stop-loss below $620 to protect against a breakdown in the 200D support zone ($747–$753).

Volatility on the Horizon: Watch for a $700 Catalyst

The next 72 hours will test META’s resolve. A close above $652.01 could trigger a rally toward $670, fueled by the call-heavy options chain. But don’t get complacent: the 200D MA at $671.18 is a stiff resistance. If the stock stalls there, the $630–$640 put-heavy zone becomes critical. The key takeaway? This is a stock with a short-term bearish trend but a long-term bullish setup. Play it like a chess game—protect your downside while aiming for the $700+ prize.