DailyPlay – Adjusting Trade (META) – December 02, 2025

META Bullish Trade Adjustment Signal

Investment Rationale

Adjustment Rationale:

We continue to hold a positive outlook on Meta Platforms, Inc. (META), and while we remain bullish, we are cautious in the short term. The recent pullback in the hyperscalers, including META, created a favorable setup for a longer-term bullish approach, so we opened the position by purchasing a deep-in-the-money June 18th expiration call option. We currently have a gain in the position and intend to remain bullish longer term, but the OptionsPlay platform generated a Bearish Trend Following Alert, indicating META has rallied within a broader bearish trend. As a hedge for the long-term call position, we will sell a short-term call against the longer-dated call to help lower the cost basis.

Adjustment Trade:

META @ $640.87
Days to Expiration (DTE): 18
Sell to Open 1 META Dec 18, 2025 680 Call @ $4.43
Mid: $4.43
Premium Received: $443.00 per call option sold
or $443 total adjustment in the cost basis for the position.

The total risk for the new position is $13,620 (original cost basis) minus $443 (net credit), resulting in a revised cost basis of $13,177.

Resulting Position:
Long 1 META Jun 18, 2026 490 Call
Short 1 META Dec 19, 2025 680 Call
New cost basis and total risk: $13,177

META – Daily

Trade Details

Strategy Details

Strategy: Short Call

Direction: Resulting in a new Bullish Diagonal Spread

Details: Sell to Open 1 META Dec 19 $680 Call @ $4.43 Credit.

Total Risk: The resulting position has a maximum risk of $13,177 (13,620-443), calculated as the initial cost basis of the long call ($13,620) minus the premium received from the adjustment ($443).

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of the trade.

1M/6M Trends: Neutral/Bearish

Relative Strength: 3/10

Stop Loss: @ $65.89 (50% loss of premium)

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry.