Traders fall back in love with Meta. Here’s where bulls see it going
Meta Platform’s artificial intelligence efforts appear to be a recipe for a comeback after a nearly year-long drought in the $1.7 trillion market cap company’s shares.
Mark Zuckerberg’s shares social media giant It rose more than 6 percent on Friday, reaching its highest level since April, extending gains that began earlier this month when the company detailed plans to sell access to artificial intelligence computing capacity. On Thursday, the company launched Muse Spark 1.1, an AI coding product that will compete with Anthropic and OpenAI. Meta’s shares have been flat for the year, while the tech-heavy Nasdaq-100 is up 18%.
Options traders piled on Friday, with volume surging more than three times the 30-day average and 78% of the stock’s $1.8 billion in option premiums tied to calls, according to data from Cboe LiveVol and SpotGamma. Some of the purchases were probably offset by sales as well; There were as many calls sold as calls, but twice as many calls were purchased compared to puts, and eight of the top 10 contracts by volume were calls as of midday.
Meta, 1 year
The five most popular trades were contracts expiring on Friday afternoon, aiming for a quick extension of early gains. The $675 strike call, which expires on Friday, is trading at around $3 per contract and Meta needs to add another 2%.
The most actively traded contract expiring after Friday is the July 17, 700 strike; this process requires a 6% advance to break even.
While bulls dominate short-term trading, at least one large investor has cast doubt on the idea that there is a major swing in either direction. The second largest trade of the session was both puts and calls for a total of $29 million on strike 670; It’s a bet that the stock will stay where it is for the next two months.
