Meta’s Options Signal Bullish Bias: Key Strikes and Block Trades Point to $700+ Upside Potential

• META’s price dipped 0.73% to $662.71, but call options dominate open interest at $700 and $680 strikes.
• Put/call ratio of 0.58 shows strong bullish sentiment, with block trades hinting at big bets above $770.
• Meta’s AI-driven ad growth and valuation discount position it as a potential breakout play in 2026.

Here’s the core insight: Meta’s options market is pricing in a bullish bias, with heavy call open interest at key resistance levels and block trades suggesting institutional confidence in a $700+ move. While the stock faces near-term support at $648, the technicals and news flow align with a higher probability of upside—provided leadership tensions don’t derail execution.

The Bullish Battle in Options: Calls vs. Puts at Key Strikes

Let’s start with the options data. This Friday’s top call options are clustered between $670 and $700, with the $700 strike leading at 11,091 open contracts. That’s not just noise—it’s a signal. Traders are betting Meta could test its upper Bollinger Band ($675.64) or even break above the 200D MA ($672.09) in the coming weeks. The histogram on the MACD (2.85) and RSI (53.13) also hint at momentum building after a long-term range.

But don’t ignore the puts. The $630 and $660 strikes have 6,034 and 5,053 open contracts, respectively. That’s a hedge against a pullback, especially with the 30D MA at $637.91 acting as a potential floor. The risk? If Meta fails to hold above $654.31 (middle Bollinger Band), the puts could gain traction.

Now, the block trades. A $770 call (META20260116C770) saw 400 contracts traded for $2.37M, expiring Jan 16, 2026. That’s a big bet—assuming the buyer expects Meta to surge past $700 and test $770. Meanwhile, older block trades (like the $840 call from Sept 2025) show fading interest in extreme strikes, which could mean the market is focusing on more achievable targets.

News Flow: AI Growth vs. Leadership Drama

Meta’s AI push is the main story. The $60B+ annual run rate from AI-powered ads and a forward P/E of 22.1x (cheapest in the Magnificent Seven) justify the bullish options activity. But the internal friction between Zuckerberg and Alexandr Wang adds a wildcard. If the AI team’s strategic direction falters, it could delay Llama 4’s launch or slow ad revenue growth.

Still, the transition to closed-source models (Avocado, Mango) and Ray-Ban Glasses’ tripled sales in H1 2025 suggest Meta’s execution is on track. The recent FTC legal win also eases regulatory worries, at least temporarily. For now, the news supports the call-heavy options setup—but keep an eye on any leadership shakeups.

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options traders:

• Bullish Play: Buy the $680 call (META20251231C680) expiring this Friday. If Meta breaks above $668.95 (intraday high), this strike could see rapid gains.
• Longer-Term Bet: The $675 call (META20260102C675) with 7,069 open contracts offers a safer entry if the stock consolidates near $654.31.

For stock traders:

• Entry: Consider buying near $648.14 (30D support) if the price holds. Target $675.64 (upper Bollinger Band) as a first profit zone.
• Bearish Hedge: Sell the $660 put (META20251231P660) if Meta dips below $654.31. It’s a way to collect premium while capping downside risk.

Volatility on the Horizon: Balancing AI Optimism with Leadership Risks

The key takeaway? Meta’s options market is pricing in a $700+ move by early 2026, driven by AI-driven ad growth and a valuation discount. But the leadership drama and regulatory headwinds in the EU/India mean this isn’t a one-way bet.

If you’re bullish, the $680 and $675 calls are your best bets. If you’re cautious, the $660 put offers a hedge. Either way, the next few weeks will test whether Meta can break out of its long-term range—and whether its AI ambitions can outpace its internal chaos.