Meta (META) Options Signal Bullish Setup: Call OI at $700 and 0.58 Put/Call Ratio Point to Potential Breakout – Here’s How to Play It

• Meta’s price action shows a -0.88% dip today, trading at $651.19 amid a short-term bullish Kline pattern and long-term range-bound pressure.
• Options data reveals heavy call open interest at $700 (18,171 OI) and $1,000 (15,054 OI) for next Friday’s expiry, while puts at $600 (12,506 OI) dominate bearish positioning.
• Block trades highlight a $2.37M call block at META20260116C770 and multiple large call sales at $780–$800 strikes, signaling strategic institutional activity.
• Analysts upgraded META to Buy with $718–$810 targets, but regulatory risks and internal AI tensions could create volatility.

Here’s the takeaway: Meta’s options market is leaning hard into a bullish narrative, with call dominance and key resistance levels in focus. The stock’s technicals and news flow suggest a high-probability setup for a breakout—if it can clear near-term hurdles.

What the Options Chain Reveals About Market Sentiment

The options data tells a clear story: bulls are stacking up at $700, while bears are hedging at $600. For next Friday’s expiry, the META20251219C700 call has the highest open interest (18,171 contracts), nearly double the nearest competitor. This suggests a price target of $700 as a key inflection point. Meanwhile, the put/call ratio of 0.576 (based on open interest) shows a stark imbalance—calls outweigh puts by nearly 2:1. That’s not just optimism; it’s a bet on a sharp move higher.

But don’t ignore the risks. The block trades tell a mixed tale. A $2.37M block at META20260116C770 (expiring Jan 16, 2026) hints at long-term bullish positioning, but the recent sell calls at $780–$800 (META20251121C780, etc.) suggest some hedging or profit-taking by large holders. If the stock stumbles below its 30D support at $608.65, the META20251219P600 put could see a surge in activity.

How the News Shapes the Playbook

Meta’s pivot to closed AI models and VR price hikes align with the options’ bullish bias. The shift to proprietary "Avocado" models and VR hardware premium pricing could drive revenue growth, especially if the market rewards AI monetization strategies. However, internal friction between TBD Lab and core teams—and the EU antitrust probe—adds a layer of uncertainty. Retailers and investors might react strongly to these developments, amplifying swings in either direction.

The key question: Will the AI pivot and VR pricing adjustments outweigh the internal chaos and regulatory risks? For now, the options market assumes they will. But keep an eye on the 200D moving average at $671.33—if the stock can’t break through that, the long-term range-bound trend might reignite.

Actionable Trade Ideas for Today

1. Options Play: Buy META20251219C700 calls if the price breaks above today’s intraday high of $654.51. The $700 strike is a psychological target with heavy OI, and a successful breakout could trigger a cascade of stop-loss orders. Target a 10–15% move to $720–$750 before next Friday’s expiry.

1. Stock Play: Consider entry near $611.90 (30D support) if the price holds. A rebound from this level could test the Bollinger Upper Band at $680.81. Use the 200D MA ($671.33) as a dynamic stop-loss if the trend weakens.

1. Bearish Hedge: If the stock gaps lower tomorrow, consider META20251219P600 puts as a hedge. The $600 strike is a floor for many bearish players, and a breakdown below $608.65 support could accelerate pain.

Volatility on the Horizon

Meta’s options and news flow paint a picture of a stock at a crossroads. The AI pivot and VR pricing changes could fuel a rally, but internal tensions and regulatory scrutiny add friction. For traders, the next 48 hours will test whether the bulls can push through the 200D MA and Bollinger Upper Band. If they do, the $700–$750 range becomes a new battleground. If not, the stock could retest 30D support and force a reevaluation of the long-term range.

Bottom line: This is a high-conviction trade, but the data lines up—options, technicals, and news all point to a pivotal moment. Play it smart, and keep a close eye on the $671.33 level. It might just decide the next chapter for META.