Wachovia Corporation (WB: sentiment, chart, options) has seen its shares plunge 5% right out of the gate this morning. In a filing yesterday, the company said its second-quarter loss would be revised to $9.11 billion to cover the costs associated with a probe into auction-rate securities sales. This brings Wachovia's quarterly loss up from $4.20 per share to $4.31 per share, and it also marks the second consecutive quarter in which the bank has upwardly revised its quarterly loss.

Additionally, WB said it will cut 6,950 jobs, an increase of 600 from its previous payroll-trimming estimate. The additional job cuts will come from the bank's mortgage operations. Overall, the headcount reductions will incur $525 million to $650 million in restructuring costs.

In other WB news, Bernstein initiated coverage of the stock this morning at "market perform" with a $20 price target. The shares closed Monday at $18.21.

Despite today's decline, WB is still holding steady atop its 10-week moving average. Following a 52% year-to-date slump, the stock has managed to close atop this trendline in each of the past 2 weeks.

In light of the equity's performance this year, a wealth of bearish sentiment surrounds WB. The stock's Schaeffer's put/call open interest ratio of 1.65 is 2 percentage points away from a pessimistic peak, and the International Securities Exchange reports that more than twice as many puts have been bought to open than calls during the past 10 days.