Options Markets Can't Avoid Greece This Week

Check out this week's full options outlook in the video below:

Markets ended the week in the red and started the Sunday night futures even deeper in the red all courtesy of uncertainty stemming from the Greek saga. At issue is whether Greece will fall in-line and remain in the eurozone or leave to walk away from their debt. The uncertainty source is the unknown of the repercussions of the exit. Markets are unsure who owns the debt and what is attached to it - the contagion effect, if any. Although, this time around, the creditors knew what they were getting into; they lent money to a desperate situation. Greece for the second time since early June has kicked its own can. First the country 'skips' payments to the IMF, promising that they would make a bigger payment Tuesday (June 30). On Monday, Greece kicked the can again until July 5 by announcing a referendum vote to stay in the euro. Greece is pretty much already in arrears since the last three payments from June 5, June 15 and June 19 were missed. So how to trade? The weekly trade next week are very dangerous and only really nimble traders should attempt them. Short week with so many catalysts make for a potentially violent price moves.

Potentially volatile and short. Heavy on economic reports center piece of which is the U.S. government labor data on Thursday. The ADP will give us a preview of it but the real action won't happen until Thursday pre-open. Good news could have a 'bad news effect' on markets. But first we need to clear the early potential tumult from the Greek debt situation. In addition to the Greek debt debacle, the eurozone also has a rate decision to make. The inflation reports that are also due are likely to inflame the debate of how long can the EQE go. On Thursday, Draghi is scheduled to speak and he is usually a market mover. Let's not forget about China; the question there is how deep will this correction go. It has the potential to price out the fast profits that they've enjoyed this year. The fall can be severe even after a terrible week ending on June 26.

Slower traders should really sit this week out. Nimble traders can set trades with 80 percent chance of success or better and manage them tightly. Losses and profits should be booked early.

All the ranges are playing out within our expectations with regards to open interest AND trends. Traders are still in the neutral zone where bulls and bears are free to roam. There is support below and resistance above. That's why Iron Condors are a decent way to generate income. The blindside potential is to the downside.

At a critical level here. Although, it closed flat on a red day in markets Friday.

: 6/26/15: Another run up on Friday and Monday following Thursday's huge candle and on volume. But, there could be hope for the shorts as it approaches prior failure area.

: 6/26/15: Bad technical set up if closes under my red line. 50 can be next fast.