Selling our FB call contracts.

Shares of FB have bounced from their recent lows, handing us some decent profits along the way. Now that the stock is getting closer to the 50-day average, there’s a greater chance we could see a pullback — and possibly a re-test of the low.

This is a good time to lighten up on some of our bullish exposure, and re-evaluate the situation. We may buy more FB calls in the future, but the reward-to-risk situation now looks less attractive.