MBIA Inc. (NYSE: MBI) put volume & volatility elevated as credit liquidity tightens. MBI, a provider of financial guarantee insurance, is recently down $2.32 to $57.29. MBI call option volume of 6,883 contracts compares to put volume of 11,323 contracts. MBI August option implied volatility of 65l September is at 48, above its 26-week average of 31, according to Track Data, suggesting hedging for downside risk.

AMBAC Financial Group Inc. (NYSE: ABK) put volume & volatility elevated as credit liquidity tightens. ABK provides financial guarantee products and other financial services to both public and private sector clients. ABK is recently down $5.49 to $67.64. ABK call option volume of 2,337 contracts compares to put volume of 4,829 contracts. ABK August option implied volatility is at 53; September is at 49, above its 26-week average of 25 according to Track Data, suggesting hedging for downside risk.

Rait Financial Trust (NYSE: RAS) put volume heavy; volatility spikes to 210 as RAS down 25%. RAS originates secured and unsecured debt instruments for private & corporate owners of real estate. RAS is recently down $3.94 to $12.10. MDLD says "downgrading to Hold; waiting out AHM issues." RAS call option volume of 4,638 contracts compares to put volume of 7,917 contracts. RAS August option implied volatility of 210 is above its 19-week average of 43 according to Track Data, suggesting hedging downside move.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.