Countrywide Financial (NYSE: CFC) put volume & volatility Spikes on investor hedging. CFC, the largest U.S. home mortgage lender, is recently down $1.19 to $26.03 on continued mortgage credit concerns. CFC Chairman, Angelo Mozilo, has been a consistent seller of CFC shares over the last month. CFC call option volume of 18,253 contracts compares to put volume of 60,213 contracts. CFC August straddle is priced at $7.20. CFC September option implied volatility of 113 is above a level of 75 from yesterday and its 26-month average of 41 according to Track Data, suggesting hedging for downside price risk.

Clorox (NYSE: CLX) volatility stays elevated after CLX sells off on EPS. CLX is recently down $4.52 to $57.11. Goldman Sachs says "earnings quality was very poor as operating results missed by .04 even with a lower than expected advertising to sales ratio." CLX September option implied volatility of 24 is above its 26-week average of 19 according to Track Data, suggesting larger risk.

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