MF Global (NYSE: MF), a broker of exchange-listed futures and options, is recently down $10.99 to $6.50.

On Feb 28, MF recorded a bad debt provision of $141 million in response to unauthorized personal trading activity by one of the company's registered representatives.

MF call option volume of 2,540 contracts compares to put volume of 6,148 contracts. MF April option implied volatility of 222 is above its 26-week average of 49 according to Track Data, suggesting larger price risk.

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

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

At least seven research firms initiated coverage of MF Global Ltd. (NYSE: MF) this morning, with the majority of the ratings favorable, based on expectations for the company to benefit from the havoc in the financial markets.

MF Global, which had a disappointing trading debut last month at $30, is a broker of exchange-listed futures and options for over 130,000 clients. Shares now trade at $26.55 in late-day trading today.

JP Morgan, who initiated MF Global with an Overweight rating, expects volume and volatility in the current market will to create earnings growth in the longer-term. However, some analysts are concerned with MF Global's competition. Deutsche Bank initiated shares of MF with a Hold rating, citing concerns over falling commission rates in a falling interest rate environment, which could pressure the company's growth. Analysts from Wachovia initiated coverage of the derivatives brokerage firm with a Market Perform rating, while Citigroup started coverage with a Hold rating.