Washington Mutual (WM) is big in Alt-a adjustables with loan loss reserves of just .6%, about 40% below the average bank. Across the WM options chain, put options volume is running 39k to 9k against the calls.
I received a very nice note yesterday from a fellow who was formerly the President of a midwestern financial thrift. He pointed out to me that allowance for loan losses at Downey Financial (DSL) are at just .44%!!! That's pretty awful considering this is a California based lender with great exposure to Alt-a. Put volume there totals only 2800 contracts today, vs calls at 870, though volume is very light.
Countrywide Funding (CFC) options volume is also skyrocketing. Put volume is running about 4-times call volume today.