Meta shares look 'iffy' into earnings. How to trade it

meta heads into earnings wednesday after the bell with fundamentals intact — ad-pricing improvements and sharper targeting still driving roughly 30% year-over-year top-line growth. the options market implies a 7.5% move by week's end, justified given meta has moved more than 10% after earnings in three of the last four quarters. technicals look iffy. the stock is lingering around its 150-day moving average, having recently fallen below it. the commodity channel index and bollinger bands also signal a precarious position. historically, buying the stock into earnings and holding two weeks returned an average of 0.92% — barely better than a coin toss. big call buying has been active: the june 620 strike calls saw substantial opening buyers monday, as did the may 675 calls. the author suggests a 625/680/750 call spread risk reversal instead — selling the 625 puts and 750 calls to finance buying the 680 at-the-money calls. historically, this structure would have averaged 1.6% per trade, or about 29% annualized, with a far higher win rate than long stock or long calls.