Meta (META) Options Signal Bullish Bias: Target $700 Calls as AI-Driven Momentum Builds

• Options data shows heavy call open interest at $700 and $680 strikes ahead of Friday’s expiry, with 10,567 contracts at $700.
• Put/call ratio of 0.58 suggests strong near-term bullish sentiment, amplified by Meta’s AI product launches.
• Block trades hint at institutional positioning, including a $2.37M call block at $770 expiring Jan 16.

Here’s the thing: Meta’s options market is screaming upside potential right now. The stock is trading just 0.1% above its previous close at $659.42, but the call/put imbalance and AI-driven fundamentals are setting up a compelling case for a breakout above $700. Let’s break down why this could be your best setup ahead of the holidays.

Bullish Sentiment Locked in at $700: Decoding the Options Heatmap

The options chain tells a clear story: traders are betting big on Meta’s near-term rally. For this Friday’s expiry, call open interest peaks at $700 (10,567 contracts) and $680 (8,158), while puts max out at $630 (5,870). This creates a call/put ratio of 1.8:1 at key strikes, suggesting institutional players are hedging against a potential surge.

The block trades add fuel to the fire. A $2.37 million call block at META20260116C770 (expiring Jan 16) implies big money is positioning for a multi-week rally. Meanwhile, older block trades like META20251121C780 (sold calls) hint at profit-taking from earlier AI hype, but the recent $770 strike block shows renewed conviction.

AI News Justifies the Bull Case

Meta’s recent product drops aren’t just buzz—they’re blueprints for growth. The Mango and Avocado AI models directly address two pain points: video content creation (Reels/Instagram) and developer efficiency. Analysts are already pricing in a $840 target, and the $37B creator ad market expansion gives the stock real tailwinds.

Combine this with Meta’s 43.28% operating margin and $60B+ in AI-driven ad revenue, and you’ve got a company that’s not just surviving—it’s scaling. The GEM ads model’s ability to personalize at scale could be the next catalyst, especially for small businesses looking to cut marketing costs.

Actionable Trade Ideas: Calls, Stock, and the Perfect Exit

For options traders: Buy META20260102C700 (next Friday expiry) at $5256 open interest. This strike sits just above the 200D MA ($671.26) and aligns with the AI news-driven optimism. If the stock breaks $680, consider rolling into META20260102C750 for higher leverage.

Stock players: Enter near $671.26 (200D MA) with a stop below $646.79 (Bollinger Middle Band). First target is $700, then $747 (200D resistance). For downside protection, sell META20260102P630 (2,147 OI) to cap losses if the AI hype falters.

Volatility on the Horizon: Balancing Risk and Reward

Meta isn’t without risks. The stock is in a long-term range between $610 (lower Bollinger) and $683 (upper band), and a break below $646.79 could trigger panic. But the RSI at 57.27 and bullish MACD histogram (3.05) suggest momentum is still on the buy side.

Bottom line: This is a high-conviction trade for AI believers. If Meta’s $770 block trade pays off, the $700–$750 range could be a springboard to $840. But keep an eye on the $650 put OI (2,147)—if that starts rising, it’s a sign the bulls might be losing control.

Final call: The options market and fundamentals are in sync. Play it smart, set tight stops, and let the AI-driven rally do the heavy lifting.