definitely good to hedge your puts. i'm fairly confident that FB will retrace once the analyst upgrade excitement wears off, but i still opened a small hedge call on friday with my original puts.
if FB rallies over $45, the call will cover my cost basis on the puts.
automatic sales are placed in advance and executed on schedule to avoid implication of insider trading.
but check out Sheryl Sandberg, a FB officer, selling 2.3m shares on Aug 7th at $38.xx/share for $91m in proceeds.
if she felt her company had a long-term growth potential, why would she place such a massive order, scheduled for right after the earnings release that (being an officer) she must have known would be shiny.
maybe she just needed $91m to cover gambling debts? ;-)