H&R Block is enjoying a respite from the selling along with a number of names in the subprime world. But look at the HRB options chain. I see huge put volume in the April 17-1/2s at nearly 13,000 contracts vs open interest is about 7,000. Same for the April 15s with 2100 trading vs open interest of 1,040. That has my attention.
Interestingly enough, UBS maintained a 'neutral' on HRB today stating that the company would be lucky not to have to shutdown the Option One mortgage unit that Block is trying to sell. But UBS added that because of the tax business, it doesn't see much downside in HRB shares.