MF Global (NYSE: MF), a broker of exchange-listed futures and options, is recently down $7.20 to $22.02 after disclosing a bad debt provision of $141 million in response to unauthorized personal trading activity by one of the company's registered representatives.
Deutsche Bank says: "this event, coupled with recent lawsuits and regulatory issues, seem to raise risk profile associated with MF."
MF call option volume of 7,924 contracts compares to put volume of 7,767 contracts. MF April option implied volatility of 68 is above its 26-week average of 41 according to Track Data, suggesting larger price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
