Round up the usual suspects: Radian (NYSE: RDN) (Cramer's Take) - MBIA (NYSE: MBI) (Cramer's Take) - MGIC (NYSE: MTG) (Cramer's Take) - Ambac (NYSE: ABK) (Cramer's Take) - PMI (NYSE: PMI) (Cramer's Take).

Throw in walking dead ACA Capital (NYSE: ACA) (Cramer's Take) and Security Capital (NYSE: SCA) (Cramer's Take), and I think you produce what is really wrong with this market.

Anybody who takes even a casual look at the October delinquencies knows that these companies are going to be severely capital-challenged. Meanwhile, value guys like Third Avenue Management (Radian) and fellow travelers (Old Republic and PMI) make Pyrrhic stands and engender short squeezes that are mistakenly not used to recapitalize. And outfits from E*Trade (NASDAQ: ETFC) (Cramer's Take) to Fannie Mae (NYSE: FNM) (Cramer's Take) are left holding the bag on this stuff.

XL Capital (NYSE: XL), provider of global reinsurance coverage, closed at $67.84.

Bear Stearns says: "XL shares have been weak recently as investors have been concerned with its exposure to SCA. XL has exposure to SCA through two areas: 1) its 46% ownership and 2) five reinsurance contracts."

XL November option implied volatility of 51 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

Security Capital Assurance (NYSE: SCA), a holding company whose subsidiaries provide credit enhancement and protection products, closed at $10.12.

SCA over all option implied volatility is at 163 according to Track Data, suggesting larger risk.

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