Mike Khouw buys Meta dip after worst week in four years

Meta shares fell 9% this week, their worst performance in four years, wiping $135 billion from the company's market value amid concerns over AI spending and legal issues. The selloff follows strong earnings but was driven by worries about Meta's AI buildout costs, a $25 billion lawsuit in New Mexico, and debt concerns. CNBC Pro's Mike Khouw recommends selling December strangles, collecting $21.30 per share, betting the stock stays between $580 and $745. Khouw argues Meta's AI assistant Muse could generate significant revenue, potentially $30 billion annually, offsetting the valuation loss. He notes the stock trades at 20x forward earnings, suggesting much of the negative news is already priced in.