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This is how you throw alley-oop passes, but the passer has to have a decent pass/layup skill? And the reciever must be able to dunk properly... otherwise when you attempt an alley, it will go unanswered, or just result in a normal type pass.
To do alley-oop passes in My Player mode, i'm not 100% sure on... i'm assuming i'd be the same, but who knows. havn't had a palyer able to try it.