The bulls are targeting National Bank of Greece as the country expects to exit its recession next year.
optionMONSTER's Heat Seeker scanners detected massive call volume buying in the European lender, most of which focused on the January 6 strike. Traders amassed more than 28,000 contracts, almost all of them going for the $0.20 ask price in a strong buying pattern.
These long calls lock in the price where shares can be purchased, giving them potentially huge leverage if the stock continues to climb. Investors use them to make sure they don't miss a rally while limiting the amount of capital at risk if the stock tanks. (See our Education section)
NBG rose 16 percent to $5.33 yesterday, following a gain of 10 percent on Friday. It's the latest stock among the once-distressed European financials to start rallying. Others such as Bank of Ireland, Banco Bilbao Vizcaya, and Banco Santander have been strongly outperforming the broader market over the last three months. (See our researchLAB market-analysis tool)
Overall option volume in NBG was 33 times greater than average in the session. Calls accounted for a bullish 90 percent of the total.
(A version of this post appeared on InsideOptions Pro yesterday.)
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