Okay, I understand that the sell order must be above the prior day's closing price in order to get a fill on a short sale. What about your buy order? Suppose the pre-market opening indications are very positive and your calculations tell you that your buy order should be above the prior day's close, do you place the order according to your calculatios, or do you use the prior day's close as your buy order price? This may just be a question of how conservative or aggressive a trader you want to be and therefore somewhat discretionary. Does anybody have any "personal" rules they follow in this regard? What has been your experience with regard to profitable trades using either one of the above possibilities. This question is directed at anyone using this strategy.
The pricing is based on the fair value, and has nothing to do with where the stock closed the day before. If the market is opening up 5%, then the buy order would be much higher than the prior day's closing price. Hope this helps....
Looks flat this morning, narrower envelope with a dropped bid on AOL. We have students again, we'll see how it goes today.
cr*p no fills today. I actually lowered my envelope to .95 instead of 1 and still nothing with all of those orders. Oh Well today is another day Robert
Same as you Robert, nothing today, not even close on any orders. I guess someone might have gotten LEH.........
6 fills and god damn order entry locked for about 20 seconds, AND I upped my share size to 800 today from 700, I was about to smash something when GE showed that 200K offer and I could not sell market. -15 (GE), flat, +3, +13, +14, -1, finished +$50 after commissions, whew!
2 fills today. one short, one long. Both positive. +20 each Got to hold the wiggles better. Envelope was .8%
I wanted no part of GE (long) today. Traded it yesterday, only to see a huge seller come in and pulp the stock down. He then went away, stock would wiggle up, then he came back and pulped the stock some more. I got it after a couple of times, fool me once... This went on all day. With this guy at Pimco (?) that manages 250 - 500 billion dollars coming down on GE, and _EVERYONE_ talking about it on CNBC this morning and all day yesterday, I think you have to be, ?brave?, to play GE on the long side (even on the open) in this market _AND_ the news on the stock. Perhaps on the open the specialist would have accounted for this - doesn't look like it. nitro