National Bank of Greece (NBG) is seeing 7X the average daily options volume, being driven by apparent rolling activity. One investor sold 2000 May 1.74 puts at 38 cents and 5,000 May 1.5 puts at $1.50 to buy 8,000 Jun 1.5 puts at 26 cents. Some of the May puts were opened on May 6 when open interest in NBG puts increased to 53.4K from 43.4K. Shares are down a penny to $1.35 today and off nearly 5 percent since the positions were opened. Today’s roll might reflect expectations for additional weakness in shares of the Greek bank over the next four weeks.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.