Meta (META) Options Signal Bullish Bias: Key Strikes and Legal Risks to Watch for 2026 Volatility

• Current price: $667.36, up 0.36% with a bullish engulfing candle
• Call open interest spikes at $700 and $690 strikes; puts cluster at $630 and $660
• Italy’s AGCM orders Meta to open WhatsApp to rival AI chatbots—legal battle could sway sentiment

Here’s the takeaway: META shows upside potential in the short term, but legal risks and a bearish put/call imbalance at key support levels demand caution. Let’s break it down.

Bullish Calls vs. Bearish Puts: Where the Money’s Flowing

The options market is split. This Friday’s call open interest peaks at $700 (OI: 13,293) and $690 (OI: 11,804), suggesting big money expects a push above current levels. Meanwhile, puts at $630 (OI: 6,075) and $660 (OI: 4,623) hint at defensive positioning if the stock dips. The put/call ratio of 0.58 (calls dominate) reinforces a bullish bias—but don’t ignore the puts. If Meta dips below its 200D MA ($671.78), those $660 puts could trigger a selling frenzy.

Block trades add intrigue. A 400-lot call block at META20260116C770 (expiring Jan 16, 2026) suggests whales are hedging for a long-term rally. But the 5,798-lot call sales at META20250919C840 (expired) signal prior bearish activity—proof that sentiment isn’t monolithic.

Regulatory Drama: A Double-Edged Sword for Traders

Italy’s AGCM ruling forces Meta to let rival AI chatbots into WhatsApp. On the surface, this looks bad for Meta’s monetization strategy. But here’s the twist: the European Commission’s antitrust probe could drag on for months, creating volatility. If Meta loses the appeal, fines under the Digital Markets Act could pressure shares. If it wins, the cloud lifts—and the stock might rebound on relief.

Investor perception is key. Right now, the market is pricing in a 50-50 chance of a legal win. That’s why calls at $700 are so popular: traders are betting on a post-ruling rebound. But if the news turns sour, those $660 puts could become a lifeline.

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options players, the META20260102C675 (next Friday’s $675 call) is a sweet spot. It’s in play if the stock holds above its 30D MA ($636.56) and breaks the Bollinger Upper Band ($674.58). A smaller bet: META20260102C700 for a high-risk, high-reward play. On the downside, the META20260102P660 put offers protection if the stock cracks below $660.

Stock traders: Consider entry near $646.45 (30D support) with a stop just below $642. If the stock holds, target $674.58 (Bollinger Upper Band). But if Italy’s AGCM rules again, exit at $660 to lock in gains.

Volatility on the Horizon: Balancing Bullish Momentum and Legal Uncertainty

The next two weeks will test Meta’s resolve. Technically, the stock is primed to break out—but regulatory risks could derail that. Your edge? Use the call-heavy options data to your advantage, but keep a tight stop. This isn’t a binary bet; it’s a dance between AI optimism and legal reality. Stay nimble, and watch those $675 and $700 strikes like a hawk.