WS is doing a great job closing Feb 16 calls with the premiums from writing soon to be worthless Feb 16 puts... Way too much open interest in the Feb 16 31 to 34 puts for it to close any lower.
write down the open interest for the 28 feb 16 calls... it is currently 13,410... the volume today so far is 13,394... If the open interest in those calls has dropped by 50% or more tomorrow when the new open interest figure is posted, do yourself a favor, close out your short position, take the profit, and go long FB at least through Friday close... I recommend through next Monday... but if you want to take your profit on Friday I won't fault you... If the open interest has not fallen double down on your short.
not going to lie. I didn't see it dropping after the earnings beat... but given the open weekly call interest for Feb 1 and Feb 8 I'm not terribly surprised in retrospect... could certainly be wrong... but nonetheless I suspect long is a much better play here than short if you are opening a position today.
volume has stalled on the Feb 16 28 and 28.50 calls... seems like WS has gotten those closed out... it has picked up on the 29 and 30 calls... looks like they will be a good way towards closing out the 29s by market close today. Then they will close out the 30s and 31s tomorrow.