Meta (META) Options Signal Bullish Momentum: Key Strikes and Strategic Entry Points for Dec 5 Expiry

• META surges 3.97% to $664.99 amid metaverse budget cuts
• Call open interest dominates at $675–$700 strikes; put OI peaks at $630
• Block trades hint at whale positioning for $770+ moves in early 2026

Here’s the thing: Meta’s options market is screaming bullish right now. With calls outpacing puts by a 2:1 margin and block trades hinting at big bets, this isn’t just a short-term pop—it’s a setup. Let’s break down why traders should lean into this momentum.

Where the Money Is Flowing: Calls at $675–$700, Puts at $630

The options chain tells a clear story. For Friday’s expiry (Dec 5), META20251205C675 and META20251205C700 have the highest open interest, with 9,182 and 6,035 contracts respectively. That’s not just noise—it’s a crowd betting on a push above $675. Meanwhile, puts at $630 ($4918 OI) act as a safety net for those wary of a pullback.

But here’s the twist: The block trades are even more telling. A $2.37M block of META20260116C770 calls (expiring Jan 16, 2026) suggests whales are eyeing a long-term rally. Combine that with the $675–$700 call dominance, and you’ve got a recipe for a multi-week bullish trend.

News as Fuel: Metaverse Cuts = Capital Reallocation

Meta’s pivot away from the money-losing metaverse isn’t just a cost-cut—it’s a strategic reset. By slashing up to 30% of that budget, the company is freeing cash for AI and smart glasses, which have shown better traction. Investors are voting with their feet: the 6% surge on Dec 4 reflects confidence in this shift.

Analysts like Mizuho’s Lloyd Walmsley are already framing this as a win for shareholders. The key question now is whether the market will reward Meta’s pivot with sustained buying, or if skepticism about its AI ambitions will cap gains. Right now, the options data leans heavily toward the former.

Actionable Trades: Calls for Friday, Stock Breakouts

For options traders: META20251205C675 is your best bet this week. With the stock already above $664, this strike has a high probability of finishing in the money by Friday. If you want to stretch it, META20251212C700 (next Friday’s expiry) offers leverage on a $700 breakout, which aligns with the 200D MA at $671.78.

Stock traders: Look to enter near $660–$665 if support holds. A break above $676.1 (today’s high) could trigger a run to $700, where the 100D MA at $713.57 and block-trade targets like $770 come into play. A stop-loss below $640 (lower Bollinger Band) would protect against a reversal.

Volatility on the Horizon: Bulls Have the Edge

The RSI at 64.37 and MACD crossing above the signal line confirm momentum is building. While the long-term trend is still ranging, the short-term setup is textbook bullish. With the put/call ratio at 0.56 and block trades pointing higher, this isn’t a flash in the pan—it’s a calculated move.

Bottom line: Meta’s options market and news flow are in sync. The $675–$700 calls and stock breakouts offer clear paths to profit, but keep an eye on the $640 support level. If it holds, this could be the start of a new uptrend. If it breaks… well, that’s a story for another day.