http://www.tickerhound.com/feed/user/erwaller/asked/feed.rss TickerHound.com Question Feed - user: erwaller's asked questions en-us contact@tickerhound.com Copyright 2009 http://www.tickerhound.com/questions/detail/20080315d5e524/was-this-a-sensible-paper-trade-or-just-luck http://www.tickerhound.com/questions/detail/20080315d5e524/was-this-a-sensible-paper-trade-or-just-luck Wednesday evening I noticed that SPY closed at around $130.25 near the lower bollinger band (1 std dev below the 20-day SMA w/ my settings). I took this to indicate oversold, and expected a rebound the next morning. So I placed a limit order for the 129 march call (expiring the next afternoon) at $1.65. The order was filled at $1.49 at 9:30 and I placed sell order around 11:30 (also limit, at $2.35) which was filled at $2.40, locking in slightly over 60% gain. Was this a good use of technical analysis? limit orders? options in general? I'm new to everything...Thanks in advance! Fri, 21 Mar 2008 19:19:59 -0400