A trader is extending a large downside position in the National Bank of Greece ahead of the elections in Athens later this month.
optionMONSTER systems show that a block of 10,000 January 2 puts were sold for $0.37 against open interest of 10,261. At the same time, 10,000 March 1.50 puts were bought for $0.27 with no open interest in that strike, so it is a new position.
The trader is closing the near-term puts, which expire at the end of next week, and is rolling the position forward by a month to a strike that is lower and out of the money . This is very likely an outright bearish play rather than a hedge , given how long the $2 puts have been in the money . (See our Education section)
The adjustment pushes the trade past Greece's national elections on Jan. 25. A victory by leftist challengers could raise the specter of a withdrawal of the country from the Eurozone.
NBG gained 2.53 percent, or $0.04, to close yesterday at $1.62 after hitting a new low of $1.52 in the morning. It was up at $6 a year ago.
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