MBIA shares have added 37 cents to $8.25 and overall options volume is running 3.5X the daily average for the mortgage insurance company, with about 15,000 calls and 2,400 puts traded in MBI so far. October 9 calls, which are now 9.1 percent OTM and expiring in 15 days, are the most ctives, 5,188 traded (66 percent Ask) against 2,597 in open interest. Oct 8, Oct 10, Nov 8 and Nov $11 calls are seeing interest as well. Implied volatility in options on the stock is up 9 percent and elevated at 113. Bullish flow in MBI and higher vols are probably related to a court decision and possible settlement payment in a court case. Lawyers from MBIA and BofA Countrywide gathered yesterday to argue causation and liability claims in a mortgage case before NY Supreme Court Justice Bransten.