Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Volatility Index S&P 500 Options-VIX up .63 to 11.07.

New Century Financial Corp. (NYSE:NEW) implied volatility & put volume Aggressive on Subprime risk

New Century Financial is a real estate investment trust, providing mortgage products to borrowers nationwide, is recently down $1.95 to $17.29. New Century Financial sold off 35% yesterday after announcing it would restate operating results for the first three quarters of 2006. Roth Capital says, "we have no reasonable basis on which to calculate estimates of GAAP earnings, taxable income, dividends or fair value. We are, therefore, suspending our estimates, price target and rating."

New Century Financial call option volume of 16,187 contracts compares to put volume of 41,414 contracts. NEW March option implied volatility of 92 is above a level 69 from yesterday and its 26-week average of 43 according to Track Data, suggesting aggressive price fluctuations.