META Meta Platforms (META) options offer high-liquidity exposure to social media dominance and massive AI infrastructure investment, with significant earnings volatility.

META's aggressive AI spending creates binary earnings reactions — guidance on capex and user engagement metrics drive outsized moves.

META Options Characteristics

Avg Daily Volume

600K+ contracts

Typical Spread

$0.03-0.10

Typical IV Rank

30-55%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$400-600

Correlation

High correlation with tech/communication services

Best Strategies for META

Iron Condors (wide)

Wide wings to accommodate large moves

Bull Put Spreads

Bullish income on support levels

Long Strangles

Profit from outsized earnings moves

Calendar Spreads

Exploit elevated front-month IV

Protective Puts

Hedge concentrated META positions

AI Capex Drives Volatility

Meta earnings are among the most volatile mega-cap events. The stock can move 10-20% on results as markets price in AI investment returns. Position sizing is critical for META options.

META Options FAQ

Why is Meta options volatility so high?

META's massive AI capex spending creates uncertainty about future returns. Earnings reactions of 10-20% are common, driven by user metrics, ad revenue, and Reality Labs losses. This translates to elevated option premiums.

How do I trade Meta earnings with options?

Given META's tendency for large moves, use wide iron condors (1.5-2x implied move) for income, or long strangles if you expect a move exceeding the implied range. Always use defined-risk strategies.