Meta (META) Options Signal Bullish Momentum: Calls at $700 Dominate as Metaverse Cuts Fuel Optimism

• META surges 4.2% to $666.50, driven by news of 30% metaverse budget cuts
• Call open interest peaks at $700 strike (2,817 contracts) for next Friday’s expiry
• Block trades hint at long-term bullish bets on $770 call expiring Jan 2026

Here’s the deal: Meta’s stock is dancing on a tightrope of optimism and pragmatism. The options market is screaming bullish, with calls at $700 dominating open interest and block traders piling into deep-out-of-the-money strikes. But the real story is the metaverse cuts—Zuckerberg’s pivot to AI and hardware is reshaping investor sentiment. Let’s break it down.

Bullish Sentiment Locked in Calls at $700

The options chain is a goldmine for clues. For next Friday’s expiry (Dec 12), the META20251212C700 call has 2,817 open contracts—the highest among OTM strikes. That’s not just noise; it’s a crowd betting on a breakout above $676.10 (today’s high). The 30-day RSI at 64.37 and a positive MACD histogram (8.62) back this up.

But don’t ignore the puts. The META20251212P620 put has 2,018 open contracts, suggesting some hedging at lower levels. The put/call ratio of 0.56 (calls dominate) means the market expects a rally. However, the 200D resistance at $747–753 looms. If the stock can’t break through that, the rally might stall.

Block trades add intrigue. The META20260116C770 call (expiring Jan 16, 2026) saw a $2.37M block trade—400 contracts at $5,930. That’s a whale betting Meta will hit $770 in six months. Meanwhile, recent sell calls (like META20251121C780) suggest short-term profit-taking, but the long-term story is intact.

Metaverse Cuts: A Win for Shareholders, Not Just Executives

Meta’s pivot away from the metaverse is a relief for investors. The unit has burned $60B since 2020, and cutting 30% of its budget could free up $2/share in 2026 earnings (per Mizuho’s Walmsley). That’s why the stock jumped 5.5% premarket—traders are pricing in a leaner, more focused Meta.

But here’s the catch: The market is still skeptical. The 200D MA at $671.78 and Bollinger Bands (upper at $657.97) show the stock is trading above its long-term average. If the rally fizzles, support at $611.90 (30D level) could hold. The key is whether AI and hardware bets (like Ray-Ban smart glasses) can offset metaverse losses.

Actionable Trades: Calls at $700, Long Entry Near $660

For options traders: Buy the META20251212C700 call. If META breaks $676.10 (today’s high), this strike could see 15–20% gains by Friday. For a safer play, consider a bull call spread: Buy META20251212C670 and sell META20251212C700 to cap risk.

Stock traders: Look to enter near $660 (intraday low) if the 30D support at $611.90 holds. Target $690 (above 200D MA) as a first exit. If the stock dips below $647.83 (30D MA), tighten stops to protect gains.

Volatility on the Horizon

Meta’s story is a classic case of “cutting the fat to build muscle.” The options market is pricing in a 7–8% rally by Friday, but the real test is whether the stock can hold above $647.83. If it does, the 200D resistance at $747 becomes the next target. But don’t get greedy—this is a momentum trade, not a long-term hold.

Bottom line: The metaverse cuts are a win for Meta’s bottom line, and the options data confirms it. But keep an eye on the 200D MA and watch for profit-taking if the stock hits $700. This is a short-to-medium-term opportunity, not a forever trade.