Massey Energy (MEE) puts are heavily traded on reports the coal miner and the US Mine Safety and Health Adminstration are under criminal investigation by the FBI following the explosion at Massey’s W. Virginia plant that killed 29 miners (NPR Story). Shares are down $2.78 to $38.38 and now down almost 30 percent since the disaster happened on April 5. In the options market, flow is bearish today, with more than 34,000 puts traded, or 3X the recent average daily. 12.1K May 35 puts traded (60 percent Ask). May 30 and 40 puts are seeing interest as well. Implied volatility is up another 26.5 percent to 67.