AIB – Too Far too fast?
Let me start by saying that I still love AIB as a stock. Owns 20%+ of MTB, etc…
Scott and I had a chat regarding AIB as it was making a push through $5.00 a share. Listen below.
The stock has run up a huge amount today. I am not sure what the news is. This is an ADR, so there generally isn’t a lot out there.
What I do know is that 25% in a day for any real company is a bit too much, too quickly. Especially if that follows a 100% gain in the past 4-5 weeks.
I just bought some put options on AIB with a strike price of $5 and an expiration in June (6/20). The options closed yesterday at $1.50 per contract. I like the run in AIB, but I would also expect a lot of profit taking with a 25% gain. UNLESS there is big news in the offing. You never know. Isn’t that always the case? You’ll see the trade in my “trading log”.
AIB Allied Irish Bank
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