Selling our META call contracts.
Meta has rebounded sharply from the stock’s most recent drop.
At this point, the stock has nearly closed the gap from its last earnings announcement. This is a logical place for investors to sell as holders have now made up the majority of capital lost when the company reported last month.
Bottom line, the risk / reward balance for META is less favorable now. It could take some time for the stock to trade back and forth before a new true bullish trend develops.
I’m happy to take an attractive profit off the table after a sharp rebound for the stock and a strong bear market rally in general.
By selling these call contracts, we’re protecting our capital and freeing up cash that can be used in situations that are working better in today’s market.