Meta (META) Options Signal Bullish Setup: Calls at $675–$665 Dominate as AI-Driven Volatility Looms—Here’s How to Position for a Breakout

• Meta’s price slipped 0.73% to $658.43, pressured by year-end profit-taking and insider sales.
• Options data shows a 0.58 put/call open interest ratio, with heavy call OI at $675 and $665 strikes.
• Block trades hint at strategic hedging, while AI spending concerns linger as a risk.

Meta’s stock is dancing on a tightrope today—pulled down by short-term selling but propped up by a bullish options setup. The key takeaway? Traders are betting on a rebound above $665, with AI-driven momentum and technical levels aligning for a potential breakout. Let’s break it down.

Bullish Imbalance in Calls, Bearish Caution in Puts

The options market is clearly leaning bullish. For this Friday’s expiration, the top call open interest is clustered at $675 (8,375 contracts) and $665 (6,354), while puts trail with the most interest at $650 (3,261). This suggests a lot of money is hedging or speculating on a rebound above $665. The put/call ratio of 0.58 (calls dominate) reinforces this bias, but don’t ignore the risks: the $630–$620 put strikes have significant OI, hinting some traders are bracing for a deeper pullback.

Block trades add intrigue. A $2.37 million call block at META20260116C770 (expiring Jan 16) and multiple large sell calls (like META20251121C780) suggest institutional players are either locking in gains or hedging against a near-term dip. The $700 call strike (4,100 OI for next Friday) is also a key watchpoint—its size implies a potential inflection point if Meta breaks above $675.

AI News: A Double-Edged Sword

Meta’s AI investments are both a tailwind and a headwind. On one hand, its open-source strategy and wearable tech bets (like Ray-Ban AI glasses) are positioning it for long-term dominance. On the other, the $40B+ capex warning and insider sales (even if routine) have traders on edge. The market’s reaction? A tug-of-war between optimism over AI monetization and fear of overcommitment. This duality means volatility is likely to persist, but the options data suggests the bulls are in control—for now.

Actionable Trade Ideas: Calls and a Strategic Long

For options traders, the META20260102C675 (this Friday’s $675 call) is a high-probability play. With 8,375 contracts in OI, it’s the most liquid and could see a pop if Meta closes above $665. If you’re bullish for next week, the META20260109C700 (next Friday’s $700 call) is a longer-odds bet with higher reward potential. Both strikes align with the upper Bollinger Band ($675.09) and the 30D MA ($639.72), creating a technical sweet spot.

For stock buyers, consider entering near $646.45 (30D support) with a stop just below $640. A breakout above $665 would target $675 first, then test the 200D MA at $672.31. If Meta fails to hold $640, the next support at $630 could trigger a deeper correction—so keep a tight stop in place.

Volatility on the Horizon

The coming weeks will test Meta’s resolve. A sustained close above $675 could reignite the 75% YTD rally, while a breakdown below $640 might force a retest of the $636.50 Bollinger Band. The options market is pricing in a bullish bias, but don’t ignore the puts at $620–$630—they’re a reminder that AI optimism can turn quickly. Stay nimble, and let the data guide your next move.