Energy May Be Turning On - Exit

XLE 3 minute

We had a little gap up at the Open followed by a retracement to fill the gap. This is the same behavior as yesterday, when I described it as a possible "Exhaustion Gap". 

Given 2 days of this price action, and the Federal Reserve FOMC rate decision announcement later today at 14:00 ET, it seemed like a good idea to exit with what profits we had left, and wait out the announcement.

Sold the XLE Sep 75 Call for 3.54 at 10:30am ET. Profit is (3.54 - 3.05) * 100 = +$49. per option.

49/305 = 16% gain. Not bad for 9 calendar days. If you annualized it, it would be 16 * 365/9 = 649% annual return.