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The options market and technicals are painting a clear picture: traders are leaning heavily into Meta’s upside potential. With call open interest outpacing puts by a 1.63x ratio and price testing Bollinger Band resistance, this stock is primed for a directional move. Let’s break down why the 670–700 price zone is the focal point for both risk and reward.
Bullish Imbalance in Options and What It Means for Price ActionThe next Friday options chain (2026-01-30) shows a striking imbalance. Call open interest peaks at the 700-strike (8,704 contracts) and 670-strike (6,011 contracts), while puts max out at 575-strike (5,937 contracts). This 1.5:1 call/put ratio suggests institutional positioning for a rally above $670. The 660-strike call (META20260130C660) saw a 500-contract block trade today—buy-side activity that could spark a short-term pop.
But don’t ignore the shadows. While the 600-strike put (4,964 OI) is the most liquid downside hedge, the 200-day support at $658.67 is now in play. If price closes below that level, the 600–615 put zone could see a surge in demand. The MACD (-8.3) and RSI (45.7) hint at a potential pullback, but the 30D MA at $647.85 offers a psychological floor.
News Flow: AI Wins vs. Regulatory HeadwindsMeta’s Q4 beat and AI-driven revenue upgrades ($150B guidance) are fueling the bullish narrative. The Galileo AI assistant and Microsoft cloud partnership add tangible value, but the EU antitrust probe and class-action lawsuit introduce volatility. Retail traders are pricing in the AI optimism—hence the call skew—but institutional investors are hedging with deep puts. The key question: will the $2B AI research investment translate to earnings before regulators force a slowdown?
Actionable Trade Ideas for TodayOptions Play: Buy META20260130C670META20260130C670-- (next Friday’s 670-strike call). With 6,011 contracts of open interest, this strike is a liquidity sweet spot. If price holds above $658.67, the 670 call could see 5–7% gains by expiry. For a safer bet, consider a bull call spread: buy META20260130C670 and sell META20260130C700META20260130C700-- to cap risk.Stock Play: Enter long near $660 if price retests the 658.67–659.94 support cluster. Target $680–690 as the next resistance zone (aligned with upper Bollinger Band at $684.65). If the 200D MA ($676.94) breaks, consider a short-term exit. For downside protection, buy the 600-strike put (META20260130P600META20260130P600--) if price dips below $644.62.Volatility on the HorizonThe coming week will test Meta’s resolve. A close above $675 could trigger a parabolic move toward $700, while a breakdown below $644.62 would invite short-term bears. With $10B in buybacks and AI momentum, the long-term trend remains intact—but near-term volatility is inevitable. Position yourself at the 670-strike calls or 600-strike puts to capitalize on either outcome.

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