Meta’s Options Signal Strategic Shift: Bullish Calls at $700 Clash with Bearish Block Trades as Wearables Pivot Unfolds

• META plunges 2.1% to $628.55, trading below 30D and 200D moving averages.
• Options market shows heavy call open interest at $700 and $800, but massive put block trades hint at institutional caution.
• Meta’s pivot to wearables and AI could fuel long-term optimism, but near-term volatility looms.

Here’s the thing: Meta’s stock is caught in a tug-of-war between short-term bearish momentum and long-term strategic bets. The price has cratered below key moving averages, while options data reveals a fascinating split—retail traders are eyeing bullish strikes, but big players are hedging downside risk. Let’s break down what this means for your trading desk today.

The Options Imbalance: Calls at $700 vs. Bearish Block Trades

The options chain tells two stories. First, the top OTM call options for this Friday’s expiration ($700, $800, $650) have massive open interest, suggesting retail and speculative traders are pricing in a rebound above $650. But here’s the catch: block trades like META20260116P690 (7,000 contracts traded for $43.4M) and META20260116P685 ($7.98M) signal institutional players are aggressively buying downside protection. These puts, with strikes near $620–$690, imply a high probability of continued weakness before the January 16 expiration.

The RSI at 39.9 and Bollinger Bands squeezing near the lower band ($640.46) back up the bearish case. If support at $624.1 (intraday low) breaks, the next target could be the 200D MA at $675—wait, no, that’s above current price. Wait, the 200D MA is at $674.99, but the stock is at $628.55. That’s a big gap. So the technicals are screaming: this is a short-term selloff, but long-term buyers might step in if the price finds a floor.

Meta’s Metaverse Pivot: Good News for 2026, Risky for Q4

The news flow is all about Meta cutting VR losses and doubling down on Ray-Ban smart glasses. Layoffs in Reality Labs (10% of 15K team) and a $70B AI investment plan are clear signals. But here’s the rub: investors love the wearables vision, but the execution risks are real. The stock’s drop today might reflect fears that the pivot is too late to offset years of metaverse losses. Retailers and consumers might love smart glasses, but Meta’s path to profitability remains unproven.

This creates a split in market sentiment. The call options at $700+ are pricing in a rebound if the wearables strategy gains traction. But the block trades suggest insiders are hedging against a deeper pullback if earnings or guidance disappoint. The key question: Will the AI wearables pivot generate enough buzz to offset near-term profit pressures?

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders, the most compelling setup is a bull call spread using the $650 strike (next Friday’s expiration). If the stock holds above $624.1, the META20260123C650 could gain 20%+ if META rallies to $670 by January 23. Why this strike? It’s just below the 30D MA ($658.54), so a rebound here would validate the pivot to wearables.

On the bearish side, the META20260116P620 (expiring Friday) is a high-probability play if the selloff accelerates. With $14.5M in open interest, this put could spike if the price drops below $624.1. For stock traders, consider a short-term long entry near $624 (support level) with a tight stop at $615. If it holds, target $650 as a first profit zone. Alternatively, a short position could target $600 if the 200D MA ($675) fails to act as a magnet.

Volatility on the Horizon: Balancing the Scales

The next 10 days will be critical. If Meta’s smart glasses production doubles as planned, the stock could stage a rebound. But if the layoffs trigger a broader tech selloff, the $600 level becomes a real threat. The options market is pricing in both outcomes—your job is to pick your side. For now, the data leans bearish in the short term but bullish for those with a 6–12 month horizon. Stay nimble, and keep an eye on that $624 support line. It’s the difference between a bounce and a breakdown.