"Last week, markets continued their upward momentum, closing at multi-year highs, mostly in response to the Fed's QE3 announcement on Thursday," said Schaeffer's Senior Options Strategist Tony Venosa. "We could see additional volatility from options expiration week, as positions are unwound."

The Dow Jones Industrial Average (DJI) is on pace to pare a portion of last week's gains. The blue-chip barometer is pointed modestly lower, as investors keep a wary eye on growing tension between China and Japan.

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Futures on the Dow Jones Industrial Average are 22 points south of fair value.

Market Statistics

Equity option activity on the Chicago Board Options Exchange (CBOE) saw 2,025,732 call contracts traded on Friday -- the most since Jan. 20 -- compared to 1,078,273 put contracts. The resultant single-session put/call ratio dipped to 0.53, while the 21-day moving average stayed at 0.65.

Currencies and Commodities

• The U.S. dollar index is starting the week off 0.04% higher to trade at $78.88.
• Crude oil has pulled back this morning, with the front-month contract 0.2% lower at $99.18 per barrel.
• Gold futures are up 0.04% in pre-market trading, with the commodity last seen at $1,773.40 an ounce.

Earnings and Economic Data

The week kicks off with the Empire State manufacturing index. Meanwhile, LDK Solar (LDK) is due to report quarterly earnings.