10/25/2006
1. Trade: bought 1 contract of XLE 55 Nov call at 2.00, sold at 2.75.
2. Evaluation: It is a precious experience to trade in this pattern. I thought that the oil price would move higher in a few months. I expected that it might move lower tommorow, because
a. XLE gained about 2% today;
b. I think that the major indexes will go up in a few days, if so, the oil price can not be so high.
c. I will buy the call again if the oil price goes down in a few days.
3. I still have no idea whether the market will go up or down. It is more possible that it will go up, but who knows.
And I will start my research on sectors.
