We hold 12 March 30 calls acquired for 0.50.  For now, do nothing further. The stock’s reluctance to join in yesterday’s election day gambol was understandable, given the unmitigated shellacking visited on those who got suckered into buying October 24’s hysterical rally.  That day’s opening bar produced as nasty a short-squeeze as we’ve seen in a long while, creating a top at $25 that was fully 28% above the previous day’s close of $19.50.

The institutional thieves and thimble-riggers who sprang this bull trap had been looking for a way to exit Facebook since the memorable day in mid-May when the company’s IPO laid an egg. They got it in spades with the short-squeeze, but it left a lot of shareholders smarting and distrustful. With yesterday’s strong rally in the broad averages to keep Facebook buoyant under continued selling, disappointed investors had a good opportunity to quietly unload. Now that the nervous Nellies are out, we can look forward to perhaps a little more base-building near current levels before the stock embarks on the rally I’ve said will acknowledge the promise of Facebooks new-and-improved revenue model (see my previous FB tout in the archive).