MBIA (NYSE: MBI) is recently down 87 cents to $5.82.
Moody's Investors Service said it will likely cut the insurance ratings of MBI because of its credit profile and constrained new business prospects.
MBI call option volume of 7,099 contracts compares to put volume of 19,095 contracts. MBI June option implied volatility of 140 is above its five-month average of 118 according to Track Data, suggesting larger price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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