Alan C. Greenberg, the 80-year old Bear Stearns (NYSE: BSC) director who joined the company in 1949, is giving $360 thousand to some of the bank's lower-level employees who may lose their jobs in the company's collapse.

According to the New York Times, "As a result of his gift, 25 longtime workers will receive $200 a month over six years. The recipients include mailroom and clerical employees, several of whom have physical or mental handicaps."

Of course, don't be feeling too warm and fuzzy: since early 2007 alone, Greenberg has sold over $30 million in Bear Stearns stock.

But it's still a nice gesture given that the bank's collapse has left a substantial dent in his net worth too. It's hard to imagine Angelo Mozilo doing something like this. Greenberg may spend the next few years dealing with shareholder lawsuits. He hasn't offered to give any money back to them.

On CNBC today, Alan "Ace" Greenberg scoffed at the notion that Bear Stearns (NYSE:BSC)was on the brink of a liquidity crisis. But the protestation wasn't enough to stem the fall of the stock price to $62.21, its lowest level since March 2003, according to Bloomberg.

Despite the denial, there were two negative developments: Bear's put options were unusually active on Monday, and the cost to insure Bear's debt against default climbed, according to Dealbook.

"Totally ridiculous" is Greenberg's assessment of the rumors, but someone's betting that it's not.

Bear Stearns-(NYSE-BSC) volatility Elevated at 56; above 26-week average of 31. BSC is recently down $5.78 to $115.49. BSC August & September option implied volatility of 56 is above its 26-week average of 31 according to Track Data, suggesting larger price movement.

Lehman Brothers Holdings, Inc. (NYSE: LEH) volatility Elevated at 55, above 26-week average of 30. LEH is recently down $2.47 to $59.56. LEH call option volume of 16,716 contracts compares to put volume of 18,651 contracts. LEH August & September option implied volatility of 55 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options-VIX up 1.34 to 24.86.

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