CIT Group (CIT) is seeing four times its normal trading volume on large block trades in the January contract. 12,900 of the January 20 calls traded for 55 cents a contract, while the same number of January 10 puts traded for $2.35. It appears to be a large call buy along with put sale, which would reflect very bullish trading in CIT. However, it is probably part of a risk reversal trade (see The Lingo for details). In any case, the stock is down 43 cents to $10.50 a share a day after Moody’s cut its investment grade rating to Baa1 from A3. The credit rating agency says CIT is facing difficult market conditions amid disappearing liquidity in the financial markets. Today, CIT responded by saying it has made “significant progress” in bolstering its balance sheet and liquidity is improving. The company disagrees with the downgrade.