Mylan Labs (MYL) is down $1.41 and put options are active after the Pittsburg Post-Gazette reported that employees routinely overrode computer-generated warnings about possible problems with medications Mylan was producing. The article cites a confidential internal report obtained by the Pittsburg Post-Gazette. Shares are down and players are bracing for additional downside with MYL Oct 10, Jan2010 10 and Jan2010 7.5 puts. Implied volatility is up to 43, from about 41.5 late Friday.