Meta (META) Options Signal Bullish Momentum: 675 Call OI Surge and 30% Metaverse Cuts Spark Buy-the-Dip Opportunities

• META surges 3.97% to $665.02, breaking above 30D MA ($647.84) but below 200D MA ($671.78)
• Call OI dominance: 675 strike leads with 9,182 contracts (this Friday expiry), while 700C sees 6,035 OI
• Block trades reveal 400-lot call buy at $770 (Jan 2026 expiry) and 5,798-lot call sell at $840 (Sep 2025)
• Put/call ratio of 0.56 shows strong bullish bias, with 630P (4,918 OI) as top near-term put

The market is pricing in a short-term rebound but hedging against long-term uncertainty. Here’s how to navigate the crossroads.Bullish OI Clusters and Whale Moves: Where the Money Is Flowing

META’s options chain tells a story of cautious optimism. The 675C strike dominates this Friday’s open interest with 9,182 contracts—nearly double the next strike at 700C. This suggests institutional players are eyeing a push above $675 as a catalyst to trigger broader call buying. Meanwhile, the 630P (4,918 OI) acts as a soft floor, with puts at 550P and 600P showing deeper bearish hedges.

Block trades add intrigue. A 400-lot buy of META20260116C770 (Jan 2026 expiry) signals long-term bullish conviction, while the 5,798-lot sell of META20250919C840 (expiring in September) hints at profit-taking by large holders. The 300-lot sell of META20251121C780 (expiring Nov 21) suggests near-term bearish positioning, but the overall call/put imbalance (2:1) favors a short-to-midterm rally.

Metaverse Cuts Fuel Short-Term Optimism, Long-Term Caution

Meta’s reported 30% metaverse budget cuts have sparked a rebound in shares—ironically, cost-cutting is being priced as a positive. Traders are betting that reduced spending will free up capital for AI initiatives or dividends, but the news also raises questions about long-term growth. The recent hiring of Apple’s Alan Dye to lead AI design adds a layer of intrigue: will this signal a pivot to hardware/software integration, or just a PR stunt?

Investor sentiment is split. Retail traders are buying calls at 675C and 700C to capitalize on the rebound, while institutional puts at 630P and 620P (next Friday’s 2,018 OI) suggest hedging against a potential pullback. The key risk? If the cuts lead to weaker innovation in AR/VR, the stock could retest 30D support at $608.65.

Actionable Trade Ideas: Calls for the Rebound, Puts for the Dip

For options traders, the META20251205C675 (this Friday expiry) offers a high-probability play. With the stock trading at $665.02, this strike has ~10 points of intrinsic value and could see a pop if META closes above $675. For a longer-term bet, the META20251212C675 (next Friday) provides extra time for the rebound to play out.

Stock buyers should target an entry near the 200D MA at $671.78. If the stock holds above $660 (intraday low), a move toward $700 (current top call strike) becomes likely. A bearish counterplay: buy the META20251205P630 if the stock dips below $660, with a stop-loss above $665.

Volatility on the Horizon: Balancing Bullish Momentum and Metaverse Uncertainty

META sits at a crossroads. The options market is pricing in a short-term rebound driven by cost-cutting optimism, but the long-term story remains murky. With 30% of the metaverse team potentially facing layoffs, the stock could see choppy action in early 2026. Traders should monitor the 700C strikes as a gauge of broader market confidence—break above that level, and the bull case strengthens. Below $660, however, the puts at 630P and 620P could become a self-fulfilling prophecy.

The key takeaway? This is a stock in transition. For now, the calls at 675C and 700C offer the best risk/reward, but don’t ignore the puts at 630P—they’re there for a reason.