The swelling in guard Kevin Grevey's sprained ankle was greatly reduced yesterday and Bullet officials are optimistic that he will be available for game two of the NBA championship series Thursday night in Capital Centre.

As soon as the club arrived home yesterday from Seattle, Grevey went to Sibley Hospital to be examined by Dr. Stanford Lavine. X-rays of the ankle proved negative, but Grevey was hospitalized overnight for extended treatments.

According to a team spokesman, if the ankle continues to improve, "We feel very, very good about him playing in game two. Things should be even clearer after a day of treatment."

Grevey, who was walking on crutches yesterday as a precaution, said that his toes "were swollen pretty good and the ankle is sore. But I'm happy about one thing. When I've had really severe ankle sprains, I couldn't move on them. But when I hurt this one, I went back out and ran for a few minutes. I think that is a good sign."

Grevey was particularly disheartened about the injury. "I was in a groove in the game. Every time I get going, it seems I get hurt. But we've come too far for me to not play now. Unless I can't move, I'm going to in there Thursday."