Cleveland-based financial firm KeyCorp (KEY: sentiment, chart, options) tumbled to a new all-time low this morning after slashing its common-stock dividend for the second time this year. The bank cut its quarterly payout by 67% to 6.25 cents per share from 18.75 cents, despite the fact that CEO Henry Meyer said last month he was "very comfortable" with the current dividend.

In a statement today, Meyer said, "The modification of our common dividend will help further strengthen Key's capital in light of the current uncertainty facing the U.S. and global economy." The slashed dividend could save KEY up to $428 million per year.

At last check, KEY shares are nearly 24% lower at $5.27, just pennies above their new all-time low of $5.11, tapped earlier in the session. In light of the downbeat news, puts are a popular choice today among KeyCorp's option players. At midday, 5,103 contracts have crossed the tape on the December 5 put, while 2,610 puts have changed hands on the December 10 strike.