Puts on SLM are busy for a second day. Shares are down $1.16 to $13.02 after the WSJ reported that the Obama adminstration is looking to cut student loan interest rates. SLM puts saw a flurry of activity yesterday in front of the news (see 10/24 color – premium). Options volume is running 2.5X the daily average today, with another 12,000 puts and 3,300 calls traded on the stock so far. Like yesterday, the action has been scattered across a number of different contracts and in smaller sizes. The top trade: a 788-lot of Jan 14 puts at $1.96. The next biggest is 188 Dec $11 puts at the 49-cent asking price. Nov $11, 12 and 13 puts are the most actives. Meanwhile, implied volatility in options on SLM is up 19 percent to 60.5 and up more than 35 percent on the week.