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.

Option update: XL Capital volatility elevated on reinsurance exposure originally appeared on BloggingStocks on Fri, 02 Nov 2007 09:10:00 EST. Please see our terms for use of feeds.