NEW YORK (TheStreet) -- It's all about Greece. The global stock markets sold off on Monday after the country failed to come to terms on a new debt deal, forcing banks in the country to temporarily close and bringing a default that much closer to reality.
There's still not enough volatility, Pete Najarian, co-founder of OptionMonster and TradeMonster, said on CNBC's "Fast Money Halftime" show. With the CBOE Volatility Index I:VIX near $17, it could have far more upside. Investors looking to buy the dip should give it a few days, as the S&P 500 is only off by 1.4%.
Jon Najarian, also co-founder of OptionMonster and TradeMonster, added that he is long portfolio protection in the form of long VIX.X call options and long S&P 500 put options. Don't sell your protection until the Volatility Index hits $20, he insisted.
While there is concern today, there doesn't seem to be panic, even in European stocks, which are down more than U.S. stocks, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. He explained that there simply isn't that much fear in the market right now.
"Bring it," Brown said in regards to whether this could be the start of a 5% to 10% correction. If it is, long-term investors will be rewarded.
Long-term investors would stand to benefit from a sizable correction, Joseph Terranova, chief market strategist for Virtus Investment Partners, said in agreement. Specifically, he likes financial stocks, which seem likely to outperform in the second half of the year. Namely, he likes Goldman Sachs (GS) - Get Report and Morgan Stanley (MS) - Get Report, as well as regional banks like SunTrust Banks (STI) - Get Report.
Taking a closer look at the banks, JP Morgan (JPM) - Get Report was downgraded to perform from outperform by analysts at Oppenheimer & Company. The slight pullback of 2% in the stock looks relatively normal, according to Pete Najarian, who still likes JP Morgan on the long side.
Brown also likes bank stocks, which seem to be finding support near their 50-day moving averages. Investors looking for a pullback should consider getting long near current levels.
Jon Najarian wasn't quite as optimistic. Given that the Fed may not raise interest rates as soon as many investors had expected, coupled with the current macro issues in Greece and Puerto Rico, it would be wise to take some profits in the sector ahead of a potential pullback.
Jeff Saut, chief investment strategist at Raymond James, said a deal for Greece will probably come at the last minute, meaning the current pullback is a buying opportunity. He acknowledged that Puerto Rico is becoming an issue, but as long as the S&P 500 stays above 2,070, all is well for now.
Turning to Macy's (M) - Get Report, Paul Trussell, a director at Deutsche Bank, defended his downgrade of the stock to sell from buy -- something Jim Cramer discussed earlier in the day. Trussell assigned a $63 price target.
Macy's seems likely to continue losing market, which will force its EBITDA to contract, Trussell explained. This will drive up its leverage ratio and ultimately cause the company to buy back less stock. The recent stock price appreciation from $62 to $70 has mostly come from speculation about a new REIT structure. However, that allows investors a prime chance to take profits.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.