Meta’s Options Signal Bullish Momentum: Key Strikes and AI-Driven Setup for Dec 5, 2025

• META surges 1.6% to $672.16, trading above its 200D MA of $671.57
• Call open interest dominates (put/call ratio: 0.57), with heavy OI at $675–$700 calls
• Block trades show large call sales at $780–$800, hinting at profit-taking
• Meta’s AI partnerships and metaverse budget cuts fuel near-term optimism

Here’s the takeaway: Meta’s options market is pricing in a bullish bias, with technicals and news aligning for a potential breakout above $680. But watch for risks below $630, where puts pile up like a safety net for bears.

What the Options Chain Reveals About Sentiment and Strategy

The options market isn’t whispering—it’s shouting. Call open interest (OI) is 46% higher than puts, with the most crowded strikes at $675, $680, and $700 (expiring this Friday). These strikes act like a gravity well: if META breaks above $675, those calls could ignite a cascade of buying. Conversely, puts at $630 and $600 suggest some investors are hedging against a pullback, though the low put OI ($550 strike excluded) implies bearish conviction isn’t strong.

Block trades add intrigue. A $2.37M sale of META20260116C770 (exp Jan 16, 2026) and multiple large call sales at $780–$800 hint at institutional players locking in gains or hedging long-term positions. Meanwhile, the $550 put OI (12,000 contracts) feels like a floor—though it’s far from the current price, it’s a reminder that extreme volatility isn’t priced in.

How Meta’s AI News Fuels the Bull Case

Meta’s recent AI partnerships with CNN, Fox News, and USA Today aren’t just PR—they’re infrastructure. By integrating real-time news into its chatbot, Meta is addressing user pain points (relevance, speed) and differentiating itself in a crowded AI space. The $30B Hyperion data center in Louisiana? That’s not just a bet on AI—it’s a bet on Meta’s ability to scale without burning cash. Analysts love the metaverse budget cuts too; reallocating $30% of that unit’s budget to AI shows strategic clarity. The market’s reaction? A 5% pop on the news, and the technicals are now amplifying that optimism.

Actionable Trades for Today: Calls, Breakouts, and Risk Management

For options traders: META20251212C700 (next Friday’s $700 call) is a prime candidate. With 5,545 contracts of OI and the stock trading at $672, this strike is within reach if the 200D MA ($671.57) holds. A breakout above $680 (Bollinger Band upper at 663.06 is already breached) could send these calls into overdrive. For a conservative play, consider a risk-reversal strategy: buy the META20251212C700 and sell the META20251212P630 to offset premiums. The puts act as a buffer if the stock stumbles.

Stock traders: Look to enter near $662–$664 (today’s open and intraday low) if support holds. A close above $675 would validate the bullish case, with price targets at $685 (RSI 70.25 suggests overbought but not exhausted) and $700. Stop-loss below $650 would protect against a breakdown of the 30D support range (608.65–611.90).

Volatility on the Horizon: Balancing AI Hype and Reality

Meta’s story is a tightrope walk: AI optimism vs. metaverse underperformance, hype vs. execution. The options market is pricing in a 1–2% move by Friday, but the real test comes in January as the META20260116C770 block trade matures. For now, the RSI at 70.25 and MACD crossing above the signal line (-7.95 vs. -17.47) suggest momentum is still with the bulls. But don’t ignore the puts at $600—they’re a 10% downside warning. If the stock dips below $650, that could trigger a short-term selloff.

Bottom line: Meta’s AI pivot is working—for now. The options and technicals agree: trade the breakout, but keep a leash on risk. As they say in trading, "The trend is your friend until it isn’t." Right now, it’s Meta’s friend.