Bulls Turn to National Bank of Greece

By David Russell, reporter at OptionMonster

NEW YORK -- The bulls are targeting National Bank of Greece ( NBG) as the country expects to exit its recession next year.

OptionMonster's trade 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 20-cent ask price in a strong buying pattern.

These 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.

The bank's stock rose 16% to $5.33 on Monday, following a gain of 10% on Friday. It's the latest 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.

Overall option volume in the name was 33 times greater than average in the session. Calls accounted for a bullish 90% of the total.

Russell has no positions in NBG.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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