Analysts are weighing in today on for-profit college operator Apollo Education Group Inc (NASDAQ:APOL), food firm SYSCO Corporation (NYSE:SYY), and semiconductor manufacturer Micron Technology, Inc. (NASDAQ:MU). Here's a quick roundup of today's bearish brokerage notes on APOL, SYY, and MU.

• APOL is bracing for an 9.9% drop out of the gate, after the company's disappointing turn in the earnings confessional and downwardly revised full-year outlook prompted Deutsche Bank and BMO Capital to each reduce their price targets to $20. The stock's had it rough enough, as is, losing more than half of its value in 2015 to settle yesterday at $15.54. Not surprisingly, short-term options traders are put-skewed toward Apollo Education Group Inc. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.26 sits just 3 percentage points from the top of its annual range.


• SYY received a pair of bearish brokerage notes, with Barclays lowering its price target to $30 from $32, and Deutsche Bank downgrading the stock to a "hold." (On the flip side, Jefferies boosted its price target to $39 from $35.) These analysts are throwing salt on SYSCO Corporation's wounds, as the company's planned merger with US Foods was blocked by a district court judge yesterday. While the shares lost nearly 3% on the news Monday, they're little changed ahead of the bell -- and sitting on a 5.4% year-to-date deficit at $37.24. Taking a step back, brokerage firms are already in the bears' camp when it comes to SYY, with seven of nine doling out "hold" or worse ratings.


• Finally, Jefferies removed MU from its "U.S. Franchise Picks" list. The stock has collapsed since hitting a 12-year high of $36.59 in early December, losing nearly half its value to sit at $18.73, and touching an annual low of $18.60 yesterday. Micron Technology, Inc. is vulnerable to additional bearish brokerage attention, too. Twenty-one analysts currently consider the underperforming shares worthy of a "buy" or better rating, versus just four "holds" and a pair of "strong sells." Plus, the stock's consensus 12-month price target of $30.18 stands at a 61% premium to Monday's close. In other words, MU could run into headwinds on a future round of downgrades and/or price-target cuts.

A one-stop shop for the day's biggest headlines and more… Sign up now to get Schaeffer's Market Recap delivered straight to your inbox!

The market took a beating on Monday, with the S&P 500 Index (SPX) shedding 2.1%. According to Schaeffer's Senior Quantitative Analyst Rocky White, the SPX has notched a single-day deficit of 2% or more only nine other times going back to 2012. While the next-day returns were mixed -- ranging from a loss of 1.2% in November 2012 and October 2014 to a gain of 1.4% in April 2013, the one-month returns were actually quite bullish. In fact, looking out one month past this rare occurrence, the S&P 500 was positive each of the previous nine times.

Widening the scope to compare this to anytime returns for the S&P 500 Index echoes the idea that Monday's massive sell-off could be positive for the benchmark down the road. While the SPX averages a next-day anytime return of 0.1% versus a next-day loss of 0.1% following a 2% plunge, the rest of the time frames favor the latter. In fact, the SPX averages a one-month return of 4.8% following a 2% drop, and is positive 100% of the time. The one-month anytime returns for the SPX are a slimmer 1.2%, and the index is positive just 69% of the time. Today, the S&P 500 is paring a portion of yesterday's big losses in early trading, on speculation of a last-minute Greek debt deal.

The 20 stocks listed in the table below have attracted the highest total weekly options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. Two names of notable interest are iPad parent Apple Inc. (NASDAQ:AAPL) and e-tailer Alibaba Group Holding Ltd (NYSE:BABA).

AAPL is up 0.9% at $125.67 today, amid the launch of Apple Music. In other news, a federal court of appeals upheld a lower court decision that the company violated federal antitrust laws by conspiring to fix e-book prices. Longer term on the charts, the stock has been stair-stepping its way lower since its late-May high of $132.97.

Amid these losses, options traders have been buying to open AAPL puts over calls at an accelerated clip, per data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, the equity's 10-day put/call volume ratio of 0.61 registers in the bearishly skewed 98th annual percentile. Today, however, AAPL is seeing buy-to-open activity at its weekly 7/2 126-strike call -- the equity's most active option -- as speculators wager on upside through this Thursday's close, when the series expires.

Elsewhere on the Street, brokerage firms are bullish toward AAPL. Of the 34 analysts tracking the shares, 22 have doled out "buy" or better assessments; plus, the stock's consensus 12-month price target of $148.75 stands in uncharted territory. Should AAPL continue to churn lower, a round of bearish analyst notes could result in headwinds.

​Shifting gears, BABA is attempting to come back from yesterday's sell-off in Chinese stocks, up 1.7% at $82.46. Helping the shares are reports the company may be trying to acquire India-based online payment platform Paytm. Longer term, however, the security remains a dud, down nearly 21% year-to-date.

In today's options pits, the weekly 7/2 and 7/10 series are popular, accounting for six of the 10 most active strikes -- with potential buy-to-open activity at the weekly 7/2 81.50-strike call, and sell-to-open activity transpiring at the weekly 7/10 85-strike call, according to the ISE. Option bulls have been active in recent weeks, based on BABA's 10-day ISE/CBOE/PHLX call/put volume ratio of 3.86 -- indicating long calls have outpaced puts by a nearly 4-to-1 margin.

As with Apple Inc. (NASDAQ:AAPL), optimism runs high toward Alibaba Group Holding Ltd (NYSE:BABA) within the brokerage bunch. All but one analyst covering the latter stock rates it a "buy" or better, and its consensus 12-month price target of $107.26 sits in waters not charted since late December. This could leave BABA vulnerable to a round of bearish attention.

By now, traders are accustomed to seeing big moves from biotech stocks, in either direction. Today, many biotechs are moving to the upside, which is apparent when looking at the top of the Nasdaq Composite's (COMP) leaderboard. According to Schaeffer's Senior Quantitative Analyst Rocky White, biotech stocks account for 10.8% of the COMP by market cap, making it the second-largest sector in the index (just behind Internet software and services stocks). Leading the charge at midday is Juno Therapeutics Inc (NASDAQ:JUNO), which we looked at earlier this morning. Other biotechs boasting big gains on the COMP are Advaxis, Inc. (NASDAQ:ADXS), Sarepta Therapeutics Inc (NASDAQ:SRPT), Alder Biopharmaceuticals Inc (NASDAQ:ALDR), and BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX).

• ADXS isn't too far behind JUNO, as the stock's 13% gain has it as the second-leading stock on the COMP, and trading at $19.50. It's been a wild year for the shares, as they have more than doubled in value. However, Advaxis, Inc. has dropped more than 35% since touching a four-year high of $30.13 earlier this month. On the sentiment front, analysts have recognized the equity's longer-term upward trajectory, with 100% of firms rating it a "strong buy."


• SRPT slipped 9.9% yesterday, after fellow biotech BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) announced its muscle disorder drug, drisapersen, was granted priority review status by the FDA. At the same time, however, Sarepta Therapeutics Inc yesterday finished submitting its marketing application for rival drug eteplirsen to the FDA. Today, the shares are fighting back, adding 8.1% to hit $30.47 -- bringing the stock's year-to-date gains back above 100%.


• ALDR was last seen 7.6% higher at $50.50. At this time last year, the shares were only trading at $19.84, so it's been quite the upward ride. As such, options traders have boarded the bullish bandwagon. During the past 10 sessions at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 7.2 Alder Biopharmaceuticals Inc calls for each put. However, not everyone's so convinced -- 12.2% of the stock's float is sold short. 


• Even though BCRX hasn't seen the same monster gains as the three stocks above, it's by no means a slouch. The stock was up 18.6% in 2015 before today, and has since added 6.1% to trade at $15.30. BioCryst Pharmaceuticals, Inc. is a favorite among analysts, with 71% saying it's a "strong buy." In fact, just this morning, BofA-Merrill Lynch upgraded the security's rating to a "buy."

A number of Greek stocks listed on U.S. exchanges are getting punished today on escalating default fears. For instance, with Greece's banks shuttered for the week and capital controls in place, the National Bank of Greece (ADR) (NYSE:NBG) is having a nightmare session, down 23.4% at $0.98, and fresh off a record low of $0.88. But NBG's far from the only one -- a number of Greece-based shipping stocks are also getting rocked, including DryShips Inc. (NASDAQ:DRYS), FreeSeas Inc (NASDAQ:FREE), and Safe Bulkers, Inc. (NYSE:SB). Let's take a look at this trio of struggling Greek stocks.

DRYS plunged to an all-time low of $0.63 earlier, and was last seen a shade higher at $0.64. All told, the stock has lost nearly 40% of its value in 2015. Analysts have taken a decisively bearish path toward the underperformer, as well, with 75% labeling it a "hold" or worse. On the flip side, short sellers have been hitting the exits in droves, with short interest on DryShips Inc. (NASDAQ:DRYS) dropping 19.5% over the last two reporting periods.

Shorts have also been fleeing from FREE, with short interest cratering by 77% during the most recent reporting period. These bears missed a golden opportunity. The shares are down 12.7% today at at $2.61. Amazingly, one year ago, FreeSeas Inc (NASDAQ:FREE) was was trading at $255.

On the flip side, short sellers have been upping the ante on SB. During the last two reporting periods, short interest rose 13.7%, and now makes up one-fifth of the equity's float -- or more than 11 sessions' worth of trading, at the stock's typical volume. These speculators are in luck -- the stock has stumbled 5.3% this afternoon to $3.20. At the same time, however, analysts may be re-examining their positions on Safe Bulkers, Inc. (NYSE:SB), as two-thirds have doled out "buy" or better endorsements.

Finally, it's worth noting that not every Greek shipping stock is getting hammered. Athens-based TOP SHIPS Inc (NASDAQ:TOPS) is actually up close to 1% at $1.04. Longer term, the shares have been consolidating in the $1-$1.20 range for most of 2015.

The Dow Jones Industrial Average is getting smashed today, as it seems unlikely Greece will get a deal done with its creditors. The blue-chip index was down over 245 points at last check, with all 30 components trading in the red. The Nasdaq Composite (COMP) and S&P 500 Index (SPX) are both decidedly lower, as well. Still, some bright spots remain. Let's take a look at how Aratana Therapeutics Inc (NASDAQ:PETX), Lumber Liquidators Holdings Inc (NYSE:LL), Ducommun Incorporated (NYSE:DCO), and Skechers USA Inc (NYSE:SKX) are dodging the broad-market trade-off.

• PETX is one of the top gainers on the Nasdaq today, adding 15.7% to trade at $15.55. The shares are getting a lift after the company announced its drug -- capromorelin -- improved the appetites of dogs in a study, and it will proceed in sending a marketing application to the Food and Drug Administration (FDA). The Street is already behind Aratana Therapeutics Inc, with all seven brokerage firms issuing "strong buy" recommendations. However, PETX remains 12.7% lower in 2015.


• LL has added 1.3% today at $21.40, with some crediting short covering as the reason. In the stock's option pits, calls are outpacing puts by a nearly 6-to-1 margin. This goes against Lumber Liquidators Holdings Inc's long-term trend, as 1.35 puts have been bought to open for every call during the past four weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The shares are still 68% lower year-to-date.


• DCO was the leader on the NYSE at last check. The shares are 8.7% higher at $25.93, after the company announced it had entered a new credit agreement. With the jump, the stock has erased all of its 2015 losses. In the option pits, Ducommun Incorporated's short-term option traders have been far more put-skewed than normal. This, according to the equity's Schaeffer's put/call open interest ratio (SOIR), which at 3.71 is only 2 percentage points from an annual high.


• Finally, technical standout SKX is higher once again, picking up 0.2% to hit $111.69. The shares have been relentless, more than doubling in 2015, and hitting an all-time high of $114.79 last week. Analysts are certainly bullish, with all six brokerage firms covering the stock saying it's a "buy" or better. Option traders, though, appear somewhat skeptical. Skechers USA Inc's SOIR of 1.07 is only 1 percentage point from an annual high.

Anxiety from overseas has sent U.S. markets on a wild ride today, with the Dow tracking a more than 290-point path so far. This frantic price action is being witnessed in a number of volatility vehicles, including the ProShares Trust Ultra VIX Short Term Futures ETF (UVXY), the iPath S&P 500 VIX Short-Term Futures ETN (VXX), and the VelocityShares Daily Inverse VIX Short-Term ETN (XIV) -- which are all making notable moves.

• UVXY is up 28.8% at 42.69, after hurdling its 40-day moving average. This trendline has been ushering the shares lower since mid-February, providing a big hand in ProShares Trust Ultra VIX Short Term Futures ETF's 68% year-to-date deficit. In the options pits, calls and puts are crossing at two times the average intraday pace. It appears speculators betting on a quick retreat by this Thursday's close are buying to open the weekly 7/2 38-strike put, while those eyeing an extended run higher are purchasing new positions at the weekly 7/2 42-strike call.


• VXX has jumped 14.4% to 19.85. The exchange-traded note (ETN) has taken out its 50-day moving average, and is also on pace to notch its highest close since mid-May. Longer term, iPath S&P 500 VIX Short-Term Futures ETN is off 38% year-to-date, and hit a record low of 16.85 last Wednesday. Speculators are rushing the equity this afternoon, with overall option activity running at almost three times what's typically seen at this point in the day. Drilling down, new positions are being initiated at VXX's weekly 7/2 20-strike call and August 17 put.


• XIV -- which trades inverse to that of VXX -- is down 13.1% at 42.26, and on track to close south of its 60-day moving average for the first time since Feb. 23. Year-to-date, the ETN has added 36%, and topped out at an all-time peak of 50.10 (you guessed it) this past Wednesday. While the VelocityShares Daily Inverse VIX Short-Term ETN doesn't trade options, there's still plenty of skepticism surrounding it. Specifically, more than 70% of the ETN's float is sold short.

NBC -- whose parent company is NBCUniversal, a subsidiary of Comcast Corporation (NASDAQ:CMCSA) -- announced earlier it is ending its relationship with Donald Trump over "derogatory statements" Mr. Trump made "regarding immigrants." While Trump had already said he would not return to do another season of "The Celebrity Apprentice" due to his presidential bid, the broadcaster said it will no longer air the Miss USA and Miss Universe Pageants, which are a joint venture by the two.

In response, Trump said, "Whatever they want to do is ok with me. I've had a lot of great relationships with NBC, I think as far as ending the relationship, I have to do that, because my view on immigration is much different than the people at NBC."

CMCSA, meanwhile, is down 1.5% today at $60.12 -- but more likely due to pressure from the broader equities market or a quick consolidation, considering the stock hit a record high of $61.64 on Friday. Regardless, today's decline has been contained by the round-number $60 mark, an area that had previously served as resistance since March.

Meanwhile, on the sentiment front, option traders have shown a preference for calls over puts in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CMCSA's 10-day call/put volume ratio of 2.22 ranks in the 63rd annual percentile.

This glass-half-full approach has spilled outside of the options arena, as well. Of the 20 analysts covering the shares, 17 maintain a "buy" or better rating, with not a single "sell" to be found. Plus, a low 1.2% of Comcast Corporation's (NASDAQ:CMCSA) float is sold short, and would take less than three sessions to cover, at average daily trading volumes.

U.S.-listed Greek stocks aren't the only international equities suffering from news. A number of Chinese names are also getting roughed up amid a liquidity crunch and an emerging bear market. Among them are E Commerce China Dangdang Inc (ADR) (NYSE:DANG), Baidu Inc (ADR) (NASDAQ:BIDU), and JinkoSolar Holding Co., Ltd. (NYSE:JKS).

• DANG is off 1.7% at $9.01, and since peaking at $11.50 earlier this month, has dropped over 21%. Earlier, though, the stock was staring at an even steeper 5.9% loss, and it remains on the short-sale restricted list. As such, puts are flying off the shelves at nine times the expected intraday rate -- though most of the volume resulted from a block of 5,222 August 8 puts that was sold to open (along with an identical lot of August 10 calls) as part of a split-strike synthetic long. While this trader is confident E Commerce China Dangdang Inc will rebound, analysts are less convinced. Just one brokerage firm considers the stock worthy of a "buy" rating, compared to five "holds" and one "strong sell."


• BIDU has stumbled to a 1.6% loss at $200.18, bringing its year-to-date deficit to 12%. This is welcome news for a recent rush of option bears. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 0.89 Baidu Inc puts for every call -- a ratio that ranks in the 93rd percentile of its annual range.


• Like sector peer Canadian Solar Inc. (NASDAQ:CSIQ), JKS has taken a severe haircut, down 7.5% at $28.24. In fact, the shares are approaching their 80-day moving average, which hasn't been breached since early February. This is a welcome development for short sellers. Nearly 18% of JinkoSolar Holding Co., Ltd.'s float is sold short, representing more than four sessions' worth of trading activity, at typical volumes.

"Make progress/halt progess" stuff with Greece and its creditors reminds me of late'12 budget negotiations- the "fiscal cliff" $SPX $VIX

— Todd Salamone (@toddsalamone) June 11, 2015

"In addition to the drama surrounding Greece, the charts present a few interesting situations. With the exception of the RUT, many equity benchmarks are trading just below previous resistance levels as we move into this week, which historically has been weak ... But the big question for those following the S&P 500 Index -- which remains locked in a range -- is whether or not the round SPX 2,100 level continues to act as a magnet, which has been the case since mid-February."

-- Monday Morning Outlook, June 22, 2015

 

Every Friday in June, the 210 strike on the $SPY has been crossed at some point during the day - Friday expiration helping out?

— Todd Salamone (@toddsalamone) June 26, 2015

Headlines that ebb and flow between a positive outlook and negative outlook on Greece striking a deal with its creditors ahead of its Tuesday, June 30, payment due to the International Monetary Fund (IMF) continue to drive markets day to day. Today, for example, Greek bank closures ahead of an expected default have sent global stocks sharply lower.

But as you can see on the graph below of the S&P 500 Index (SPX - 2,101.49), the market has gone nowhere during the month of June, as the magnetic 2,100 level continues to balance things out when the index deviates too far above or below this round level, which roughly equates to 210 on the SPDR S&P 500 ETF Trust (SPY - 209.82). In fact, we have found it interesting that the 210 strike on the SPY tends to be the home of heavy call and put open interest from week to week, on both weekly and standard expiration options.
 

As discussed a few weeks ago, the negotiating tactics between Greece and its creditors, and their impact on the market, are strikingly similar to the "fiscal cliff" budget negotiations of late 2012. As headlines persisted about being on the verge of inking a deal, to the possibility of a budget deal not getting done, the SPX traded in a range, before finally exploding higher on the first trading day of 2013, after an eleventh-hour deal was struck.

So we enter another week in which the U.S. market will be impacted by overseas events. One event that we didn't discuss above is China, as the Shanghai Composite has declined more than 20% since mid-June, including a sharp sell-off on Friday and another big plunge today. With the situation in Greece heating up, will U.S. markets essentially ignore what is happening with China's market, as they did Friday?

Additionally, this week is a holiday-shortened week due to Independence Day, which will be observed on Friday. For options traders, your special treat is two expiration days -- quarterly expiration on Tuesday, and weekly expiration on Thursday, due to the markets being closed this Friday. For those that trade off economic data, here is your reminder that another potential market mover, the June employment report, will be released on Thursday. 

With many investors fixating on June 30, the deadline for Greece to meet its IMF obligation, I thought it would be interesting to see how the SPY open interest configuration stacks up for quarterly options expiring on June 30 and weekly options expiring on Thursday, July 2. As expected, put open interest is predominant, so favorable news related to Greece could create unwind short covering related to expiring put options, with potential resistance at call-heavy strikes from 213-215. But a negative outcome could push the SPY down to 205 relatively quickly, which is around its 2015 breakeven mark of 205.54. Both overseas and domestic events, compounded by two expirations within a week and a quarter-end, could spur a lot of volatility this week.    

In fact, we continue to focus on the CBOE Volatility Index's (VIX - 14.02) 15.53 level, which is half the 2014 peak and a level that has capped multiple VIX highs this year. That said, given that there is still a large short position among VIX futures players, plus the early stages of a build-up in VIX call open interest to protect these short positions after June VIX expiration -- and potentially thin volume during a holiday-shortened week, with a plethora of macro events and two expirations -- one could easily argue that the market is at a heightened vulnerability to a volatility pop that we haven't witnessed this year. So again, we advise having short exposure of some kind along with your long exposure.

"Nearly halfway through the year, the S&P 500 has moved in a compressed 154-point window. That's the ninth narrowest range for the large-cap index over the first six months of the year since 1928, according to brokerage FBN Securities ... For those years that saw narrower trading ranges to start the year, the S&P 500 rose, on average, 3.9% in the back half of the year. Only in one instance -- 1981 -- did the large-cap index decline in the last six months of the year."
-- The Wall Street Journal, June 24, 2015

Finally, with the end of the month imminent, we want to step back and look at the bigger picture, which means a longer-term, monthly SPX graph. As we do this, we want to keep the excerpt above in mind from The Wall Street Journal, which quoted research from FBN Securities on how the second half of the year has played out when a narrow range persists in the first half. A graph with the research showed that in seven of those years, the SPX went on to trade higher in the second half of the year. The only year it was in the red was 1981. 

In doing my own research, I found that in June 1981, the SPX experienced a monthly close below its 10-month moving average, after hitting an all-time high in late 1980 and using the 10-month moving average as support in prior months. The point being, where the SPX closes with respect to its 10-month moving average at the end of this month could dictate how the second half of the year plays out. Will it be a repeat of previous years in which the market trades higher in the second half of the year, following a narrow trading range in the first half? Or will the second half of 2015 be like the second half of 1981, when it traded lower after a monthly close below its 10-month moving average in June? The SPX's 10-month moving average is at 2,057.86 currently, which coincidentally is around the index's 2014 close of 2,058.90.  

 

Read more:

Indicator of the Week: The Third Year in Presidential Cycles

The Week Ahead: Greece, Apple Music, and Jobs Highlight a Holiday-Shortened Week

Analysts are weighing in today on e-commerce giant eBay Inc (NASDAQ:EBAY), drugmaker Organovo Holdings Inc (NYSEMKT:ONVO), and commodity concern Chesapeake Energy Corporation (NYSE:CHK). Here's a quick roundup of today's bullish brokerage notes on EBAY, ONVO, and CHK.

• EBAY saw its price target lifted at both J.P. Morgan Securities and Evercore ISI, after the company announced the spin-off date for its PayPal division. The former brokerage firm set its mark at $64 -- all-time high territory -- while the latter moved its expected price up to $55, although that marks a discount to Friday's close at $61.03. The shares have been strong this year, adding 8.8% -- and touching a June 5 record high of $63.30 along the way -- and option traders expect more upside. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) eBay Inc's 10-day call/put volume ratio comes in at 4.44, which is only 9 percentage points from an annual high. Analysts haven't been as impressed, as 58% say EBAY is a "hold" or worse. The shares could get a lift, if additional bullish notes come down the pike.


• Even though the stock has dropped nearly 46% in 2015 to trade at $3.93, Jefferies started ONVO with a "buy" recommendation and a $5 price target. Elsewhere, Organovo Holdings Inc has been a favorite among short sellers. Almost 28% of the security's float is sold short, which would take bears almost four whole weeks to repurchase, at the sock's normal daily volumes. Echoing this pessimistic outlook is ONVO's Schaeffer's put/call open interest ratio (SOIR), which at 1.14 lands in the 86th percentile of its annual range. 


• CHK has been a long-term laggard on the charts, dropping 61% in the past 12 months to finish Friday at $11.16, after matching Thursday's six-year low of $11. The stock is trading higher in electronic trading, though, as Sterne Agee CRT raised its outlook to "buy" and increased its price target to $13 from $9, saying CHK has plenty of liquidity to stabilize its balance sheet in the years to come. Most analysts don't feel the same way. Of the 20 brokerage firms covering Chesapeake Energy Corporation, 17 rate it a "hold" or worse. 

Get the skinny on all the biggest stories of the morning… Sign up now to get Schaeffer's Midday Market Check delivered straight to your inbox!

U.S. markets are sharply lower in electronic trading, after Greece failed to reach a debt resolution with its creditors over the weekend. Among specific equities in focus are Athens exchange-traded fund (ETF) Global X FTSE Greece 20 ETF (NYSEARCA:GREK), financial firm National Bank of Greece (ADR) (NYSE:NBG), and nutritional supplement specialist Herbalife Ltd. (NYSE:HLF).

• GREK is bracing for a 15.3% plunge out of the gate -- and on pace to surrender support atop the $10 mark -- after banks in Greece were shuttered and capital controls were implemented. Over the weekend, Greek Prime Minister Alexis Tsipras called for a referendum on a proposed bailout package for the country, sending rumors spiking over a possible "Grexit." The ETF has been in a downward spiral for some time, shedding nearly half its value year-over-year to churn near $11.78. In the options pits, long calls have been preferred over puts, per Global X FTSE Greece 20 ETF's 20-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.68. Premium on the ETF's front-month options are currently pricing in lofty volatility expectations, too. GREK's Schaeffer's Volatility Index (SVI) of 95% ranks in the 80th annual percentile.


• After closing at $1.28 on Friday, NBG is reeling ahead of the bell, down 25% -- and on its way toward record-low territory. Banks in Greece will remain closed through the week, with ATMs -- which will reopen tomorrow -- allowing a 60 euro limit on cash withdrawals. On the charts, the National Bank of Greece has been in a steady decline over the past 12 months, shedding roughly 65%. Option traders, meanwhile, have been buying to open puts over calls at a rapid-fire rate in recent weeks. At the ISE, CBOE, and PHLX, NBG's 10-day put/call volume ratio of 0.33 sits in the 86th percentile of its annual range. Echoing this is the security's Schaeffer's put/call open interest ratio (SOIR) of 0.89, which rests higher than 79% of all similar readings taken in the past year. Simply stated, short-term speculators are more put-heavy than usual.


• Bill Ackman is at it again. This time, the activist investor is demanding HLF CEO Michael Johnson release a 2005 video in which he supposedly called the company a "lottery ticket." At last check, the shares were off 1.2% in electronic trading, after settling last week at $53.75. Longer term, HLF has performed well in 2015, up more than 42% -- and true to form, is set to end June on a high note. Short sellers, however, are unconvinced Herbalife Ltd. (NYSE:HLF) can sustain this momentum. More than 29% of the stock's float is sold short, representing 18.8 times HLF's average daily trading volume.

Want an even earlier advantage on the biggest news before the bell? Sign up now to get Schaeffer's Opening View delivered straight to your inbox!