Bearish trading has resurfaced in the KBW Regional Banking Fund (KRE). Shares are trading down $1.32 to $32.83 and 23,000 puts have traded, compared to just 322 call options. The September 25 puts are the most actives, with nealry 20,000 traded and 100 percent trading on the offer. The puts are offered for just a dime and, given open interest of 125,082 contracts, the activity might be closing trades. However, it might also represent some possible disaster insurance, as some skittish investors buy out of the money puts on concern about the risk of further fallout in the financials.