'Magnificent 7' stock Meta Platforms Inc (NASDAQ:META) is up 2.4% to trade at $627.94 this morning. A report from Reuters suggested the company plans to lay off 20% of its workforce in favor of AI, though a company rep said it was just "speculative reporting." The company is also seeing buzz from a new $12 billion, five-year deal with Nebius (NBIS), where it will provide Meta with AI infrastructure capacity.
Today is a welcome lift for META, after the shares gapped 3.8% lower on Friday, adding to its now 7% year-to-date deficit. The stock has support in place at a trendline connecting November lows, an area that caught Friday's drawdown.
Options traders have been quick to react today, with 66,000 calls exchanged in the first 30 minutes. This marks double the average daily rate, with heightened action seen at the March 650 call.
Options are affordable, too. Meta Platforms stock's Schaeffer's Volatility Index (SVI) of 35% that stands higher than 22% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.
