Meta (META) Options Signal Bullish Shift: Key Strike Levels and AI-Driven Trade Setup

• META plunges 1.77% to $658.32, breaking below its 30-day moving average amid bearish technicals.
• Options market shows heavy call open interest at $700–$750 strikes, with a put/call ratio of 0.62 hinting at bullish positioning.
• Block trades reveal a $400-lot call purchase for April at $680, signaling long-term conviction in AI-driven growth.
• Analysts raise price targets to $800–$900 as Meta pivots wearables and AI spending, despite near-term profitability risks.

Here’s the thing: Meta’s stock is caught in a tug-of-war between short-term bearish momentum and long-term AI optimism. The price drop today has traders scrambling to balance technical indicators with options market sentiment—and the story isn’t as simple as it looks. Let’s break it down.

What the Options Chain Reveals About Market Sentiment

The options market is a goldmine of insight. Right now, call open interest is concentrated at strikes like $700, $705, and $750 (expiring this Friday), while puts dominate at $530 and $650. That 0.62 put/call ratio for open interest? It’s a clear tilt toward bullish bets, even as the stock trades near its intraday low.

But don’t ignore the puts. Heavy open interest at $650 suggests some traders are hedging a potential rebound off support levels. The real kicker? A block trade of 400 contracts bought for the META20260417C680 call (expiring April 17). That’s not just noise—it’s a vote of confidence in Meta’s long-term AI and wearable strategies, even if near-term earnings take a hit.

News Flow: AI Spending vs. Profitability Concerns

Meta’s recent headlines are a mixed bag. On one hand, the company is cutting jobs in its metaverse division and redirecting funds to wearables—a move that’s rattled short-term confidence. On the other, its $135 billion AI spending plan and partnerships with Google/OpenAI are fueling analyst optimism. Barclays and Evercore just raised price targets to $800 and $900, betting Meta’s AI-driven ad tools and WhatsApp shopping agents will pay off.

The catch? Increased R&D and capex are squeezing 2025 margins. Investors are split: some see this as a necessary investment in future dominance, while others worry about near-term cash burn. The options data leans toward the former—those April 2026 calls suggest buyers are banking on a rebound by midyear.

Actionable Trade Ideas for Today

If you’re trading stock, keep an eye on the $657.79–$660.48 support cluster. A close above this zone could trigger a bounce toward the 30-day MA at $658.58. Consider entries near $658 with a target at $670 (the 200D resistance level) and a stop below $646 (the intraday low).

For options, the META20260213C700 call (expiring Friday) is a high-conviction play if the stock breaks above $660. It’s cheaper than the $750 strikes and sits in a sweet spot for potential volatility expansion. On the cautious side, the META20260213P650 put offers downside protection if the AI narrative falters before earnings.

Volatility on the Horizon

Meta’s story isn’t just about numbers—it’s about narrative. The options market is pricing in a shift from metaverse skepticism to AI optimism, but execution will matter. If the company can prove its wearables and AI integrations deliver user growth (not just headlines), the $700–$750 calls could become a battleground. For now, the key is to stay nimble: short-term bearish trends may persist, but the long game is all about who controls the AI narrative.

Bottom line: This is a stock at a crossroads. The technicals scream caution, but the options and analyst upgrades whisper opportunity. Your move? Pick your spot—then watch the story unfold.