Meta Earnings: A Low-Risk Options Play Ahead
Ahead of Meta's earnings, fundamentals look solid with ad-pricing improvements driving roughly 30% year-over-year revenue growth, but the chart is mixed around the 150-day moving average. The options market prices in about a 7.5% move post-announcement, with notable buying in 620–675 strike calls. The suggested approach is a call spread risk reversal: sell 625 puts and 750 calls to finance buying 680 at-the-money calls. This lowers risk and caps upside (roughly 8%), while historically delivering a higher win rate (around 29% annualized) compared with buying the stock or near-term calls. Buying Meta stock into earnings has been a coin flip with modest average gains; the spread strategy aims for better risk-adjusted returns.