Implied volatility in XL Capital (XL, news, chart, volatility) remains elevated, even as the stock rallies $1.60, or 29.5 percent, to $7.03 a share. Like other insurance names (MET, PRU, HIG), the stock is bouncing back after worries about the credit crisis sent the sector skidding last week. Now, some investors will be tuning in to XL Capital’s earnings report due out after the closing bell today. Implied volatility in the October 5 puts is above 600 percent ahead of the news. The October 2.5s, which are 64.4 percent out of the money and have five trading days of life remaining, are bid for a dime. Implied vols in that contract is more than 700 percent.