Call Sellers Take Premium in Property-Casualty Insurers By Rebecca Darst About this article: Following Tuesday's gonzo rally, it seemed in some way inevitable that today's 50-basis-point rate cut would be a bit of a flameout. Stocks by and large have surrendered early gains. One exception appears to be insurers, which rallied sharply after the rate cut and amid a difficult earnings season. A Reuters report out Tuesday held that property-casualty insurers, including Travelers and Chubb have insisted that they will survive without the need of federal bailout assistance, and this -- coupled with the rate cut -- may have engendered a surge of optimism that resulted in sharp gains for shares and a rise in call-side premiums. Shares in Ace Ltd rallied 10.5% to $54.57, and implied volatility on its options dropped 17%, following its earnings report. An increase in options trading volume to nine times the normal level showed traders positioning freshly in December 60 calls,... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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