Meta Platforms' shares rose over 6% on Friday, reaching their highest level since April, driven by the company's recent AI developments, including the launch of Muse Spark 1.1, an AI coding product aimed at competing with established players like Anthropic and OpenAI. Despite being flat for the year, this uptick comes as the tech-heavy Nasdaq-100 has gained 18%.
Options trading surged, with volumes exceeding three times the 30-day average, and 78% of the $1.8 billion in options premium linked to call options. While some call buying was balanced by selling, the overall sentiment leaned bullish, particularly in short-term trades.
The most popular options were contracts expiring Friday, with the top trade being a $675 strike call, which requires a 2% increase in Meta's stock price to be profitable. Additionally, a significant trader placed a $29 million bet on the stock remaining stable at the 670 strike over the next two months, indicating mixed expectations among investors about future volatility