Potential Greek Default Slams Dow Futures

Dow Jones Industrial Average (DJIA) futures are taking a cue from their overseas peers this morning, selling off sharply on news that talks between Greece and its international creditors broke down over the weekend. As such, the country will likely default on an International Monetary Fund (IMF) loan repayment due tomorrow, while Prime Minister Alexis Tsipras has called a referendum for Sunday, July 5, allowing citizens to vote on whether to accept a bailout package -- which would require Greece to implement austerity measures. As the country's fate in the eurozone hangs in the balance, banks across the country are closed today, with capital controls being put in place to dodge a bank run. While Greece is the primary focus, traders stateside will also digest the latest pending home sales index and the Dallas Fed manufacturing survey later this morning.

 

Continue reading for more on today's market, including:

 

• Everybody needs a quick refresher on the two basic types of options.
• Amid a string of recent IPOs, these 2 Wall Street rookies just threw their hats into the options-trading ring.
• Although put volume has notably lagged call volume of late, option bears have had no problems betting on this pair of outperforming equities.

 And now, on to the numbers…

Futures on the Dow Jones Industrial Average (DJIA) are nearly 156 points below fair value.

Market Statistics

The Chicago Board Options Exchange (CBOE) saw 782,894 call contracts traded on Friday, compared to 580,590 put contracts. The resultant single-session equity put/call ratio jumped to 0.74, while the 21-day moving average remained at 0.60.

 

Currencies and Commodities 

• The U.S. dollar index is up 0.2% at 95.63.
• Crude oil has given back 2.3% to trade at $58.24 per barrel.
• Gold has tacked on 0.4% at $1,178 per ounce.

 

 

Earnings and Economic Data

 

The pending home sales index for May will be released this morning, as will the Dallas Fed's manufacturing survey. Earnings announcement after the closing bell include Apollo Education Group, Inc. (APOL) and CHC Group (HELI). To see what else is on this week's agenda, click here.

 

Overseas Trading

 

For a breakdown of today's trading in Asia and Europe, including a surprise move by the People's Bank of China, read Overseas Trading: Global Stocks Sell Off on Greece.

 

 

Unusual Put and Call Activity