AMBAC Financial (NYSE: ABK) -

Moody's affirmed ABK's triple-A rating. FBRC raised its rating on ABK to Outperform. ABK, a provider of financial insurance-guarantee products, was trading at $28.27 in early trading, above its close of $22.81 Friday. ABK January option implied volatility of 130 is above its 26-week average of 67 according to Track Data, suggesting larger risk.

MBIA (NYSE: MBI) -

Moody's affirmed MBI's triple-A rating. MBI was trading at $29.10 in early trading, above its close of $27.60. MBI January option implied volatility of 119 is above its 26-week average of 65 according to Track Data, suggesting larger price fluctuations.

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

MBIA (NYSE: MBI) closed at $34.60 Wednesday.

MBI announced on Dec. 10 it will raise up to $1 billion of capital through an investment by Warburg Pincus. Warburg will also purchase $500 million of MBI common stock and support a shareholder rights offering of up to another $500 million. MBI estimates it will incur a case loss reserve of $500 to $800 million in Q4. Fitch is expected to release a review of MBI's credit standing soon. MBI December 30 straddle is at $4.30. MBI January option implied volatility of 111 is above its 26-week average of 63 according to Track Data, suggesting larger price fluctuations.

AMBAC Financial (NYSE: ABK), a provider of financial insurance-guarantee products, closed at $24.87 Wednesday.

Fitch is expected to release a review of ABK's credit standing soon. ABK January option implied volatility of 131 is above its 26-week average of 66 according to Track Data, suggesting larger risk.

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