I have no idea.  Typically, you can find the reason a stock is going through the roof. With the shares in AIB, I have NO idea.  I have liked this stock for a long time.  I first bought shares at around $7.  I added shares to my long term portfolio below $2.00 so my basis is around $3.47.

I bought some puts while the stock was up about 25% yesterday.  I felt the move was way overblown and was likely due to some buying action that forced the hand of the shorts.

Well, I gave up on my small put option trade a few minutes ago.  It is already looking like a mistake, but I am not so sure.  We might be up for a run about $5.60 today.  This thing was at $0.72 on 3/5/09.   It was at $2.74 as recently as 5/18/09.  Too far, too fast in my opinion.

I sold my puts ithe morning panic.  I mean, my morning panic.  I mean, the morning run up.  In any event, I don’t feel good about it.  I was afraid that this would continue to run and it appears I have already cost myself about $100 by making the silling early morning trade.  Folks don’t do that.  As I reflect during the writing of this post, it is more clear to me that this is settling in and would have allowed for an orderly exit of my contracts mid-morning today.  You can view my sad little losing trade in my trading log.

Have to set my goal and stick with it.  The fact that they were  option contracts with 17 days left in them made me bolt.

AIB Allied Irish Bank

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