A Simple Way to Play the Greek Bailout

Steve Kanaval |

Animal_House.jpg



The Greek bailout is in the news and if you want to make a bet, you can do so by buying or selling (shorting) shares in National Bank of Greece S.A. ($NBG). Shares are liquid, and reflect what is happening in the bailout. If you look at this chart from Yahoo Finance, you see how share valuation has declined over a two-year period.

Today, you have a 16% bounce in share price on news that a potential bailout is in the offing. I expect that if Greece leaves the Euro, shares will go to near zero, and if the European Union comes up with a solution I would expect they would trade back above $2.00 per share.

This is a simple way to participate if you have an opinion about how this will resolve itself. It is also liquid, so if you are a hedger and you need to lay off the risk of Greece failing, you can acquire some simple downside protection.

Action in shares today are shorts covering who were expecting Greece to exit the Euro and are taking off the hedge. Whatever your motivation, this is a liquid way to participate in the Grexit.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
NBG National Bank of Greece S.A. ADS n/a n/a n/a 0

Comments

Emerging Growth

Breathtec BioMedical Inc.

Breathtec Biomedical Inc is a medical diagnostics company. It is engaged in developing & commercializing breath analysis devices for the early detection of infections & life threatening diseases including cancers,…

Private Markets

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…

BioSculpture Technology, Inc.

BioSculpture Technology, Inc. (“BST”) is a commercial-stage medical device manufacturer of liposuction surgical instruments for surgeons. It offers the FDA-cleared Twin Cannula Assisted Liposuction ("TCAL") Airbrush Liposculptor II® controllers, Airbrush®…