Meta options volume jumps as AI plans revive trading interest

Meta Platforms shares rose sharply on Friday, reaching their highest level since April, while options volume was running at more than three times its 30-day average, according to data cited by CNBC from Cboe LiveVol and SpotGamma. The move followed a renewed focus on the company’s artificial intelligence plans at a $1.7tn market-cap business whose stock had been flat for the year, compared with an 18% gain for the Nasdaq-100.

CNBC reported that the shares jumped more than 6% during Friday’s session, extending gains that began earlier in July after Meta described plans to sell access to its AI computing capacity. On Thursday, the company introduced Muse Spark 1.1, an AI coding product positioned against offerings from Anthropic and OpenAI, according to CNBC.

The options market showed a strong preference for upside exposure in Friday trading. Cboe LiveVol and SpotGamma data cited by CNBC showed 78% of Meta’s $1.8bn in options premium was linked to call options. Calls give buyers the right, but not the obligation, to buy shares at a set price before expiry, so demand for them can reflect wagers on further gains or hedging by market participants.

The flow was concentrated in very short maturities. CNBC reported that the five most active trades were all contracts expiring Friday afternoon, indicating demand for instruments tied to an immediate extension of the stock’s advance. The most heavily traded contract was the $675 strike call expiring Friday, which traded at about $3 a contract and required Meta to rise roughly another 2% by the close to break even, according to CNBC.

Activity was not uniformly one-directional. CNBC said some call demand was likely offset by selling, with as many calls sold as bought. Even so, more than twice as many calls were bought as puts, and eight of the 10 largest contracts by midday volume were calls, according to the same Cboe LiveVol and SpotGamma data.

Further out on the calendar, the busiest contract expiring after Friday was the July 17 $700 strike call, CNBC reported. That position required about a 6% additional rise in the share price to break even, based on the reported pricing.

One large trade pointed to a different view on volatility. CNBC reported that the second-largest trade of the session involved the sale of $29mn in both puts and calls at the $670 strike, a position structured around the stock staying close to that level over the next two months.

Selling calls and puts at the same strike brings in premium upfront, but it leaves the seller exposed if the shares move substantially in either direction. In this case, CNBC described the trade as a wager against a large move rather than a directional bet on Meta’s shares.

Meta’s latest AI-related announcements have therefore produced two simultaneous market signals: renewed equity demand after a period of underperformance against major technology benchmarks, and heavy use of options to express near-term views. The company’s progress in converting AI infrastructure and tools into revenue remains the central issue behind those trades, based on the developments cited by CNBC.

This story draws on original reporting from CNBC.