E*Trade (NASDAQ: ETFC) announced it expects to take significant write-downs in Q4 on its asset backed securities.
- ETFC announced The Securities and Exchange Commission is conducting an informal inquiry of ETFC loan and securities portfolios.
- Smith Barney says: "Bankruptcy risk cannot be ruled out-downgrading to a Sell."
- ETFC is recently trading at $6.25, below its close of $8.59.
- ETFC overall option implied volatility of 86 is above its 26-week average of 53, according to Track Data, suggesting larger price fluctuations.
Amex Financial Select Sector-XLF overall volatility at 41; 26-week average is 25
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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