When risk-on sentiment returns, here's an options trade on a stock that may lead the charge

According to CNBC Pro contributor Nishant Pant, Meta (META) is poised for a breakout after a period of consolidation, with technical indicators like MACD and DMI signaling a potential bullish trend. Pant suggests a bull call spread strategy, buying the $670 call and selling the $675 call with a June 27th expiry, to capitalize on the anticipated upward movement, offering a potential 100% return if META reaches or exceeds $675 by the expiration date.

Analysis

The broader market has entered a consolidation phase over the past three weeks following a rebound from a tariff-induced correction, a period often preceding a significant directional move. Within this environment, Meta Platforms (META) is highlighted as potentially preparing for a bullish breakout, having remained range-bound since May 14th and currently testing a significant resistance level. Technical analysis presented by a CNBC Pro contributor indicates strengthening positive momentum for META. Specifically, a short-term MACD (5,13,5) registered a bullish crossover on May 30, 2025, providing an early entry signal, while the Directional Movement Index (DMI) shows the DI+ line spiking upwards, suggesting a strengthening bullish trend. A conclusive break above the current resistance is anticipated to potentially drive META's stock price into the $700s. The overall sentiment for META based on these technical signals and the proposed trade setup is strongly positive.

Key Decisions for Investors

• Investors could assess Meta Platforms for a near-term appreciation potential, considering the technical signals that point towards a possible breakout from its recent trading range.
• The suggested META $670/$675 bull call spread with a June 27th expiration, costing $250 for a potential $250 profit, presents a defined-risk approach to capitalize on a price move to or beyond $675 by expiration.
• Monitor META's price action closely for a decisive breach of its current resistance zone as confirmation of the bullish thesis, while exercising caution due to the faster MACD's propensity for false positives, necessitating robust trade management.