Option update: Financial sector volatility increases on credit quality

Sovereign (NYSE: SOV) - September volatility Elevated at 55; above 26-week average of 28. SOV, a $90 billion financial institution with nearly 800 community banking offices, is recently down $1.20 to $17.47. SOV September option implied volatility of 55 is above its 26-week average of 28 according to Track Data, suggesting larger price risks.

CIT Group (NYSE: CIT) - September volatility of 65 above 26-week average of 29. CIT, a commercial & consumer finance company, is recently down $1.78 to $36.77. CIT September option implied volatility is at 65; above its 26-week average of 28 according to Track Data, suggesting larger risk.

Genworth Financial (NYSE: GNW) - September volatility of 38 above 26-week average of 26. GNW is a financial security company meeting the retirement, longevity and lifestyle protection, investment and mortgage insurance needs of 15 million customers. GNW is recently down .97 to $29.01. GNW September option implied volatility of 38 is above its 26-week average of 26 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX up 4.11 to 25.33.

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