Meta’s Options Signal a Bullish Rebound: Key Strikes and Block Trades to Watch for Jan 16–23 Expirations

• META’s price dropped 2.2% to $627.67, breaking below its 30D support at $655.34.
• Options data shows heavy call open interest at $700 and $650 strikes, with a put/call ratio of 0.606 (bullish skew).
• Block trades in deep puts (e.g., META20260116P665) hint at hedging ahead of Friday’s expiry.
• Meta’s AI pivot and $70B reinvestment could spark a rebound—if execution matches hype.

The big picture? Meta’s short-term bearish move has triggered a surge in call buying at key strikes, suggesting a potential rebound. But the stock’s 200D MA at $675 looms as a critical resistance. Let’s break it down.What the Options Chain Reveals About Market Sentiment

The options market is split. For this Friday’s expiry (Jan 16), the top OTM call has 35,435 open interests at the $700 strike, while puts dominate at $600–$620. That’s a classic “buy the dip” setup—traders are betting on a rebound but hedging downside risks. The put/call ratio of 0.606 (calls > puts) reinforces this bullish tilt.

But don’t ignore the block trades. A 325-lot trade in META20260116P665 (expiring Friday) suggests some big players are hedging a near-term pullback. Meanwhile, the $700 call’s massive open interest could act as a self-fulfilling prophecy if the stock rallies.

Meta’s AI Pivot: A Tailwind or a Distraction?

Meta’s shift from metaverse to AI wearables is both a risk and an opportunity. The $70B reallocation into AI chips and talent is aggressive, but the market’s reaction to its 1,000-job cuts in Reality Labs is mixed. Investors love efficiency plays, but cutting VR teams could spook growth bulls.

Here’s the catch: Meta’s AI glasses (like Ray-Ban smart models) are already gaining traction. If the company can prove these products drive revenue, the stock could snap back. The key is execution—will AI wearables deliver ROI faster than VR did? The options market seems to think so.

Actionable Trade Ideas for Today

For options traders:

• Bullish Play: Buy the META20260116C650 call (Jan 16 expiry, $650 strike). With the stock at $627, this is a deep-in-the-money contract that could benefit from a rebound toward $650. If the stock closes above $650 by Friday, the intrinsic value alone could net 7%+ gains.
• Bearish Hedge: Sell the META20260123P620 put (Jan 23 expiry) if you’re long the stock. The block trade at $665 suggests support may hold near $620, making this a low-risk way to collect premium.

For stock traders:

• Entry Near Support: If META holds above its intraday low of $624.1, consider buying dips near $625–$630. A break above the 30D MA at $655.34 would validate the bullish case.
• Target Zone: Aim for $650–$670 as a short-term target. A close above $675 (200D MA) would signal a shift in momentum.

Volatility on the Horizon

Meta’s options activity and block trades suggest a volatile week. The $700 call and $620 put strikes are psychological battlegrounds. If the stock rallies above $650 by Friday, the Jan 23 expiry’s $660 call (META20260123C660) could become a hotspot for momentum traders. But watch the RSI at 39.9—oversold territory may not last if buying pressure builds.

Bottom line: Meta’s AI pivot is a long-term story, but the options market is pricing in a near-term rebound. Play it smart—use the current dip to secure bullish positions, but keep a tight stop below $620 to avoid a breakdown. The next 72 hours could tell us if this is a buying opportunity or a deeper correction in the making.