Meta Plummets 3.2% in Volatile Session: What's Fueling the Selloff?

Summary
• Meta (META) trades at $748.5, down -3.22% from previous close of $773.44
• Intraday range spans $745.31 (low) to $765.99 (high), signaling sharp reversal
• Options chain shows 5,486 contracts traded for 750-strike call, largest volume
• With 14.5M shares traded (0.67% turnover rate), Meta's move mirrors broader tech sector weakness as sector leader Alphabet A (GOOGL) falls -1.43% in same session.

Meta's Sharp Intraday Slide Amid Volatile Options Activity
The -3.22% decline in META reflects a classic bearish reversal pattern with technical indicators showing early exhaustion. While no corporate news was announced, the options data reveals significant bearish positioning: 5,486 contracts traded at the 750-strike call (delta 0.48) and 7,179 contracts at 760-strike (delta 0.36) suggest large-scale short-term bearish bets. The RSI at 67.44 (overbought territory) and MACD (7.53) above signal line (6.46) with positive histogram (1.07) indicate overbought divergence. Price has broken below key 200-day MA ($628.31) and 30D support range ($711.49–$713.32), triggering algorithmic selling.

Interactive Media Sector Weakness Amplifies Meta's Selloff
Meta's -3.22% decline significantly outperforms (worse) its sector leader Alphabet A (GOOGL) which fell -1.43%. While no sector news was reported, the Interactive Media & Online Content sector's broader technical deterioration is evident. The sector's key technical level at 200-day MA (628.31 for Meta) appears to be a common trigger point, with multiple large-cap tech names showing similar breakdown patterns. This suggests the selloff is part of a broader tech sector correction rather than company-specific concerns.

Options Playbook: Aggressive Short-Term Bearish Strategies
• 200-day MA: 628.31 (below current price)
• 30D MA: 714.96 (broken)
• RSI: 67.44 (overbought)
• MACD: 7.53 (signal: 6.46, histogram: +1.07)
• Bollinger Bands: Price at 748.5 (above middle band 716.03 but below upper 749.01)
• Key support/resistance: 711.49–713.32 (30D) / 571.29–577.07 (200D)

Top options picks for aggressive bearish positioning:

• META20250808C750 (Call) - Strike: $750, Expiry: 2025-08-08, IV: 28.39%, Leverage: 64.43%, Delta: 0.48 (moderate), Theta: -2.57 (high time decay), Gamma: 0.0127 (high sensitivity), Turnover: $7.58M
  • High leverage ratio (64%) amplifies downside potential
  • 28.4% IV suggests fair pricing
  • High turnover ($7.58M) ensures liquidity
  • 5% downside to $711 would generate ~$38.50 profit (max $101.50)


• META20250808C760 (Call) - Strike: $760, Expiry: 2025-08-08, IV: 27.42%, Leverage: 104.53%, Delta: 0.36 (moderate), Theta: -2.03 (high time decay), Gamma: 0.0123 (high sensitivity), Turnover: $7.53M
  • 104.5% leverage ratio offers maximum downside exposure
  • 27.4% IV suggests fair pricing
  • 7,179 contracts traded ensure deep liquidity
  • 5% downside to $711 would generate ~$48.50 profit (max $149.00)

Given the broken 200-day MA and overbought RSI, aggressive bears should consider META20250808C760 for maximum leverage. If price breaks below 711.49 support, consider doubling down on META20250808C750 for a 64.4% leveraged play.

Backtest Meta Stock Performance
The backtest of META's performance after a -3% intraday plunge shows favorable short-to-medium-term gains. The 3-Day win rate is 56.85%, the 10-Day win rate is 60.24%, and the 30-Day win rate is 67.68%, indicating a higher probability of positive returns in the immediate aftermath of the plunge. The maximum return during the backtest period was 7.14%, which occurred on day 59, suggesting that META can recover significantly from such events.

Critical Juncture: Watch 711.49 Support and Sector Leadership
Meta's current trajectory suggests a potential continuation of the bearish trend until 711.49-713.32 support range is tested. The 200-day MA at 628.31 remains a critical long-term target. Investors should monitor the sector leader Alphabet A (GOOGL) which fell -1.43% today - a -3.22% move in Meta suggests the sector is in early-stage correction. Immediate action: consider META20250808C760 for leveraged bearish exposure if price breaks below 745.31 intraday low. Watch for a potential rebound above 765.99 intraday high to confirm reversal.