Metlife (MET, news, chart, volatility) has seen a substantial increase in implied volatility Thursday. Shares are trading down $4.46 to $43.69 amid a broad sell off in the insurance stocks. The sector is under pressure after Senator Majority Leader Henry Reid said Wednesday night that a major insurer is on the verge of bankruptcy. He didn’t mention a specific name and explained that another senator mentioned it to him at a recent meeting. 13,000 MET puts have traded on the day, compared to 4,600 calls. The November 45 puts are the most actives, with 2,600 traded and nearly all of the day’s volume trading on the offer. Implied volatility in that options contract is above 130 percent, up more than 40 percent since yesterday.