Washington Mutual (NYSE: WM), recently down $2.17 to $25.71.

The New York Attorney Generals office said it is suing First American Corp and its eAppraisalIT unit for alleging colluding with WM to use a list of preferred appraisers to inflate mortgage appraisals. WM call option volume of 24,401 contracts compared to put volume of 71,383 contracts. WM November option implied volatility of 62 was above its 26-week average of 34 according to Track Data, suggesting traders are purchasing puts to hedge against further downside risk.

First Fed Financial (NYSE: FED), the fourth largest Los Angeles-based financial institution, recently down $3.88 to $38.90.

FED call option volume of 2,046 contracts compared to put volume of 1,503 contracts. FED November inflate option implied volatility of 81 was above its 26-week average of 46 according to Track Data, suggesting larger risk.

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

Option update 11-1-07: Washington Mutual put volume and volatility aggressive, WM at 7-year low originally appeared on BloggingStocks on Thu, 01 Nov 2007 16:44:00 EST. Please see our terms for use of feeds.