Meta (META) Options Signal Bullish Momentum: Calls at $700 Dominate as AI News and Block Trades Fuel Near-Term Optimism

• META surges 2.6% to $664.56, breaking above 30D SMA but still below 200D SMA of $676.94
• Call open interest spikes at $700 (4,768 contracts) and $670 (2,930), while puts dominate at $615 (5,200)
• Block trade of 500 contracts at META20260130C660 suggests institutional bullishness ahead of Friday's expiry

Here's what's happening: The options market is whispering a story of cautious optimism. While Meta's stock grapples with long-term resistance near its 200-day moving average, short-term bulls are stacking up calls at key strike levels. The $700 call wall—combined with a put/call ratio of 0.61 (favoring calls)—hints at a potential breakout scenario. But let's dig deeper.

Bullish Calls vs Bearish Puts: A Battle for Control

The options chain tells a clear tale. For this Friday's expiry, the $700 call (OI: 4,768) and $670 call (OI: 2,930) form a formidable bullish wall. These strikes align with Meta's 200D resistance range (747-753), suggesting traders are pricing in a potential rebound. Meanwhile, the $615 put (OI: 5,200) acts as a safety net for downside risks.

But don't ignore the block trades. The META20260130C660 call (500 contracts bought) is a red flag for institutional activity. At $660, this strike sits just 0.6% below the current price—ideal for capitalizing on today's momentum without needing a massive move. It's the options equivalent of "buy the rumor, sell the news".

AI News: A Double-Edged Sword for META

Meta's decision to pause teen AI access and massive layoffs in Reality Labs have investors scratching their heads. On one hand, the AI character pause could be seen as damage control—preventing regulatory backlash before its new parental controls launch. On the other, the 573 layoffs (across Reality Labs and Metaverse teams) signal a pivot away from its "metaverse first" strategy.

Yet the market seems unfazed. With Q3 revenue up 26% and AI spending projected to surge in 2026, bulls are betting Meta's long-term growth story remains intact. The recent $2B Manus acquisition (now under Chinese scrutiny) adds volatility, but the stock's 2.1% rebound post-news suggests investors see regulatory hurdles as manageable.

Actionable Trade Ideas for META

For options traders:

• Aggressive Play: Buy META20260130C670 (expiring Friday). With OI at 2,930, this strike offers leverage if Meta closes above $670 by expiry. Target: $690 (RSI suggests 45.69 isn't overbought yet). Stop: Below $655.
• Conservative Play: Buy META20260130C660 (the block-traded strike). This 0.6% OTM call costs less and has a higher probability of profit if Meta holds above $644.62 (Bollinger Band middle). Target: $675. Stop: Below $640.

For stock traders:

• Entry: Consider buying META near $644.62 (Bollinger Band middle) if it holds above $644.45 (intraday low).
• Targets: First resistance at $659.94 (30D support/resistance range), then $676.94 (200D SMA).
• Stop: Below $635 (RSI 45.69 suggests a 10% drop would be concerning).

Volatility on the Horizon

Meta sits at a crossroads. The options market is pricing in a 7-8% move by Friday, driven by both AI news and capital expenditure fears. While the 200D SMA remains a psychological hurdle, the 30D SMA ($647.85) offers short-term support. With MACD (-8.32) still below signal line (-6.07), patience is key—look for a bullish crossover before committing larger capital.

This isn't a "buy and hold" setup. It's a high-probability, short-term trade for those comfortable with Meta's AI-driven volatility. The key takeaway? The market believes Meta's AI investments will pay off—just don't let today's optimism blind you to the $600 level, where puts are already bracing for a potential drop.