Assured Guaranty (NYSE: AGO - option chain) shares rose Monday after the stock received positive coverage in Barron's over the weekend. An analyst wrote in the magazine that shares of the stock could appreciate quickly since it is the only bond insurer among its competitors that still has the credit rating and financial strength to write insurance on new issues of municipal bonds and bond securitizations. Barron's also said that Assured Guaranty could have smaller-than-expected losses from claims. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AGO.

AGO opened at $18.70. In morning trading, the stock hit a low of $18.70 and a high of $19.63. As of 11:05, AGO was trading at $19.53 up 1.38 (7.6%). The chart for AGO looks neutral and S&P gives AGO a neutral 3 STARS (out of 5) hold ranking.

Assured Guaranty (NYSE: AGO) is recently down $8.77 to $9.95. Moody's said it placed AGO debt under review for possible downgrade. AGO has a triple-A-rated credit rating.

Wilbur Ross announced on Feb. 29 the agreement to invest $1 billion in AGO, a Bermuda-based holding company that provides credit enhancement products. AGO August option implied volatility of 195 is above its 26-week average of 69 according to Track Data, suggesting larger price movement.

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

Assured Guaranty (NYSE: AGO) closed at $25.65 Friday.

Wilbur Ross announced on Feb. 29 the agreement to purchase $250 million of AGO common stock as well as a commitment to purchase up to $750 million additional shares at AGO's option for one year after the closing of the initial investment at 97% of the volume weighted average price of the common shares for the 15 days prior to the notice of investment.

AGO is a Bermuda-based holding company that provides credit enhancement products.

AGO overall option implied volatility of 54 is below its 26-week average of 64 according to Track Data, suggesting decreasing risk.

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

Wilbur Ross may like to invest in distressed companies, but it looks like some of the teetering bond insurers may be too much even for him. According to Forbes.com, today he put an end to speculations about shoring up a troubled insurer by announcing he would be investing nearly $1 billion in the relatively stable Assured Guaranty(NYSE:AGO), a Bermuda-based reinsurer.

Some on Wall Street had hoped Ross could put his cash muscle behind on of the insurers that struggling, such as AMBAC Financial Group(NYSE:ABK). But Ross is playing it safer in these turbulent financial markets.

According to Marketwatch, Ross insists that the first $250 million is not "rescue capital". "The idea is to enhance their position for internal growth." he said. So more deals may be in the future.

The markets like the news as shares of AGO are up today a little over 10%.