Options traders piled into Meta Platforms Inc. today, driving a pronounced skew toward call positions as the market digested settlement news tied to a $16.7 billion legal payout. By midday, total options volume on the stock hit roughly 1.22 million contracts, more than 2.5 times the usual flow, with calls accounting for the lion's share.
The most actively traded option was the $580 call, which changed hands in 13,077 contracts. Other heavily traded strikes included the $600 call (10,014 contracts), the $590 call (7,876 contracts), the $585 call (7,450 contracts) and the $570 call (6,506 contracts). Reported open interest at those strikes ranged from 1,948 at the $570 call to 7,034 at the $590 call, underscoring the mix of fresh positioning and existing exposure.
Options flow and market context
- Calls: 878,663 contracts
- Puts: 340,006 contracts
- Total options volume: ~1.22 million contracts by midday, over 2.5x normal levels
The stock initially jumped 1.2% on the settlement news and was trading at $581.03, up 1.93%, sitting just above the most popular $580 strike. The concentration of activity at near-the-money and slightly out-of-the-money calls points to traders positioning for additional upside following the relief rally from the settlement development.
Volatility, skew and technical signals
Despite the surge in call buying, measures of expected and realized volatility show a cooling trend. Three-month implied volatility fell by 0.30 points to 41.35%, a decline that nevertheless leaves implied moves relatively high. Realized volatility remains elevated as well, with the 90-day realized volatility at 48% and the 30-day realized volatility at 46%.
Skew metrics show a slight tilt toward upside demand - the 90/110 skew moved to -0.45 percentage points, indicating a modest preference for calls even as downside risk is not being ignored. The relative strength index sits at 41.2, below the neutral 50 mark, which suggests that the shares have not fully shaken off recent weakness despite the intraday rebound.
Takeaways
The dominance of call volume, particularly at strikes clustered just above the current price, suggests market participants are betting on further gains after the settlement-driven rally. At the same time, the decline in implied volatility and in shorter-term realized volatility implies traders expect somewhat calmer trading ahead - though levels above 40% still signal meaningful potential for swings.
Options flows often lead stock moves, and today's activity—heavy call buying at-the-money and slightly out-of-the-money—reflects forward-looking positioning for continued upside rather than a pure reaction to headline news.