Toyota: When will the Bleeding Stop for Shareholders (NYSE:TM)

Toyota Motor Corporation (ADR) (NYSE:TM) shareholders are down 15% in the last month and headlines like today's "Gov't: 34 deaths alleged in Toyotas since 2000" are only going to bring out the short sellers in spades.

There are 11,062 open contracts on the Toyota Feb 2010 $70 strike and 8,839 contracts on the $65 Feb 2010 strike.  Looking ahead there is reason to suspect the remaining 2010 put contracts could attract more interest thanks to the AP's story published today titled Gov't: 34 deaths alleged in Toyotas since 2000:

WASHINGTON — Complaints of deaths connected to sudden acceleration in Toyota vehicles have surged in recent weeks, with the alleged death toll reaching 34 since 2000, according to new consumer data gathered by the government.

Complaints to a database maintained by the National Highway Traffic Safety Administration about the popular Toyota Prius hybrid grew by nearly 1,000 in just over a week.

On Monday, Transportation Department spokeswoman Olivia Alair said NHTSA is quickly gathering information to help guide the government's examination of sudden acceleration, the Prius braking system and other safety issues.

Toyota Motor Corp. has recalled 8.5 million vehicles globally during the past four months because of problems with gas pedals, floor mats and brakes, threatening the safety and quality reputation of the world's No. 1 automaker. The government typically receives a surge in complaints following a recall. None has yet been verified.

The new complaints reflect the heightened awareness of the massive recalls among the public and underscore a flurry of lawsuits on behalf of drivers alleging deaths and injuries in Toyota crashes. Three congressional hearings are planned on the Toyota recalls.

In the past three weeks, consumers have told the government about nine crashes involving 13 alleged deaths between 2005 and 2010 due to accelerator problems, according to a NHTSA database. The latest reports are in addition to previous complaints from consumers that alleged 21 deaths from 2000 to the end of last year.

The database also shows that new complaints skyrocketed over the 2010 Prius gas-electric hybrid, which was recalled last week to replace braking software.

Here are the open contracts on the $70 Toyota Puts:

Expires	Symbol	Last	Chg	Bid	Ask	Vol	Open Int
Feb 10	TM100220P00070000	0.05	0.15	0.05	0.10	2,263	11,062
Mar 10	TM100320P00070000	1.00	0.35	0.95	1.00	698	5,692
Apr 10	TM100417P00070000	1.80	0.44	1.75	1.90	289	7,220
Jul 10	TM100717P00070000	3.81	0.30	3.80	3.90	91	1,721
Jan 11	ZOX110122P00070000	6.10	0.40	6.10	6.40	17	1,015
Jan 12	LJY120121P00070000	9.65	0.00	8.80	9.40	0	302