I just wanted to follow-up on my previous 2 posts, because a bunch of people have asked me questions about this little strategy! Well, it's not really a strategy per se, but more like a shot in the dark and see if you hit your traget! It doesn't always work out, so here's an example where I didn't get filled at my desired price. But that's ok, sometimes you get lucky, sometimes you don't! I just don't want to get filled at a higher price where the risk/reward was not as good, and then you end up chasing the stock. The important thing is to that you identify your price targets accurately, where the risk/reward ratio is heavily on your side!
So last night I watched JDSU trade in AH, and notice a nice little area of support around 20 to 20.25, so I set an order to buy some shares at ~20.11. I knew that 21.5 would be an area of resistance, so I didn't want to buy higher than 20.5, otherwise my r/r would not have been good. I never got filled unfortunately, but that's ok, because I still played JDSU after the open!
On the other hand, I did get lucky with YRCW in AH though. I had put an order to buy shares at 4.04, which was 1 penny above the low of day from 2 days ago. So I got filled this morning ~8am, and the stock rallied straight up afterwards! I scaled out along the way up, where the second arrow is, but I'm still holding some shares as I write this post.