Janus has been a mediocre fund manager, especially since the founders all left. Now they are caught in one of the biggest scandals in the history of mutual funds. Yet their stock--ticker JNS-- is only down about 15%, from around 18 to around 15. It's still up around 50% from its lows this year in March. Are mutual fund assets so sticky that they won't have tremendous redemptions? Will the media respond to their huge ad budget and shut up about this scandal? Can they continue to get 401k plans to use them? What about lawsuits? I don't know the answers but consider this. What if there are other scandals? Do you really think this was an isolated one time thing? Jim Cramer has a post up advising them to emulate BAC and fire the responsible people, but it may not be that easy. What if it goes to the very top? Or what if the culprits have other dirt they can trade to Spitzer? I'm not short this one yet, but I think it's a good bet there is another shoe to drop. The Dec 12.5 puts are $.50 ask.