Expedia (EXPE - option chain) shares are rising today after AMR Corp. (AMR) said it has reached an agreement with EXPE that will allow Expedia to offer American Airlines and American Eagle flights on its website. Expedia had pulled AMR fares from its site in December after AMR began pushing the use of direct links to its own sites. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on EXPE.

EXPE opened this morning at $23.50. So far today the stock has hit a low of $22.74 and a high of $23.55. As of 12:05, EXPE is trading at $23.11 up 0.68 (3.0%). The chart for EXPE looks bullish and S&P gives EXPE a positive 5 STARS (out of 5) strong buy ranking.

AMR Corp. (AMR), which owns American Airlines, is firmly out of favor this afternoon. With a little less than two hours to go before the market closes for the day, I see a quote of $7.77, which means that the stock is down over 6%. Volume is extremely active.

The company released its fourth-quarter earnings report earlier today, which the market obviously isn't celebrating. According to the Associated Press, AMR Corp. lost 29 cents per share. While being in the red is never a good thing, it should be noted that Wall Street was projecting the net loss to come in at 36 cents per share.

Analyst Upgrades

• Hewlett-Packard (HPQ) to buy from neutral at UBS.
• Fluor (FLR) to overweight from neutral at JPMorgan.
• Macy's (M) to outperform from neutral at Credit Suisse.
• Canadian Solar (CSIQ), JA Solar (JASO) and HeartWare (HTWR) to buy from hold at Auriga.
• Ashford Hospitality (AHT) to outperform from market perform at FBR Capital.
• RenaissanceRe (RNR) to buy from neutral at Janney Capital.
• DCT Industrial (DCT) to market perform from underperform at Wells Fargo.
• Coeur d'Alene Mines (CDE) and Silver Standard (SSRI) to buy from hold at Deutsche Bank.
• Weatherford (WFT), Hercules (HERO), GulfMark Offshore (GLF), Tidewater (TDW) and GlaxoSmithKline (GSK) to buy from hold, and Diamond Offshore (DO) to hold from underperform, at Jefferies.
• Ritchie Bros. (RBA) to buy from neutral at BofA/Merrill.
• AstraZeneca (AZN) to buy from hold at Citigroup.

AMR (AMR) operating unit American Air pulled the ability to buy its tickets from travel site Orbitz.

"Effective December 21, 2010, schedules and fares for flights on American Airlines and American Eagle are no longer available on Orbitz.com or websites powered by Orbitz.com", the company said. Tickets will still be sold through travel agencies and at the firm's own website -- AA.com.

Ford (F) reported October U.S. sales were up 19.2% to 157,935 units. November 16 and December 16 calls are active on total option volume of approximately 405,000 calls. November option implied volatility is at 33, December is at 34, January is at 32; below its 26-week average of 39, according to Track Data, suggesting decreasing price risk.

CBOE Volatility Index/VIX is down 1.74% to 19.84.

AMR Corp (AMR) closed up 7%. November option implied volatility is at 55, February is at 53, below its 26-week average of 61, according to Track Data, suggesting decreasing price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

American Airlines (AMR - option chain) shares are rising today after unveiling an international joint-venture agreement with British Airways and Iberia Lineas, which the company says will increase revenues. AMR also recalled 800 furloughed employees to staff additional flights expected beginning in the spring, which should be more good news for the stock. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on AMR.

AMR opened this morning at $6.29. So far today the stock has hit a low of $6.17 and a high of $6.38. As of 12:20, AMR is trading at $6.25 up 0.14 (2.3%). The chart for AMR looks neutral and S&P gives AMR a neutral 3 STARS (out of 5) hold ranking.

Cleveland fans are angry and still in denial, while South Florida is jumping for joy and celebrating the region's king catalyst for the housing market turnaround. On the evening of July 8th, LeBron James officially placed a catalyst for a potential bottom on the fledgling South Florida condo and housing market. Season tickets at American Airlines were already sold out in anticipation of the King James arrival to the city of Miami. In the words of Minyanville's Todd Harrison today, "Inspiration is a beautiful thing."

Nobody could be more excited and inspired with the King James confidence booster than the following employees of these six companies:

Is it time to take some profits off the table with AMR Corp. (AMR), parent of American Airlines, first discussed here on June 25, 2009 at a price of $4.28?

Those investors who can't tolerate the risk can consider selling a portion of their AMR position, and lock-in a cool 90% gain. However, those investors who can tolerate the risk can go for a possible larger gain.

Note of caution: American Airlines is a high-risk stock, not suitable for moderate-risk/low-risk investors. Don't buy AMR if you can't tolerate losing 50% of your position's value: it could happen.

Analyst Upgrades

• Keefe Bruyette upgraded East West Bancorp (EWBC) to outperform from market perform after the company acquired assets from Washington First International Bank. The firm has a $21 price target for shares.
• Piper Jaffray upgraded Amylin (AMLN) to overweight from neutral, citing valuation and Bydureon's profile. The firm maintains a $26 price target for shares.
• Soleil upgraded MGM Mirage (MGM) to hold from sell, citing signs of stabilization in Vegas and valuation. The firm upped its target for shares to $13 from $11.10.
• T. Rowe Price (TROW) was upgraded to outperform from market perform at FBR Capital.
• JetBlue (JBLU) was upgraded to buy from neutral at BofA/Merrill.
• NetEase.com (NTES) was upgraded to buy from hold at Standpoint Research.

UAL Corp (UAUA) and Continental (CAL) announced a merger of equals. AMR Corp (AMR) May put option implied volatility is at 65, June is at 64, August is at 63, below its 26-week average of 68, according to Track Data, suggesting decreasing price movement.

Intermune's (ITMN) pirfenidone PDUFA date is May 4. Pirfenidone is a treatment for IPF (Idiopathic pulmonary fibrosis). May put option implied volatility is at 231, June is at 155, July is at 125, according to Track Data, suggesting large May price movement.

Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Another day, another airline fee and this time it's for carry-on luggage! Is there no limit to these fees? Spirit Airlines, out of Fort Lauderdale, Florida, is going to start charging a fee on August 1, 2010. The only group that is not chagrined are probably the nudists that travel light when vacationing.

Given all the fees the airlines are tacking on they might as well evolve into banks. Actually I think this is another instance where business has learned a bad lesson from government agencies. The government may require legislative action to raise taxes but bureaucrats the world over seem to be able to add new fees at will.

After the closing bell Monday, American Airlines (AMR) announced that its March load factor came in at 81.7% -- an increase of 2.6 points compared to the same period last year. AMR's traffic increased 2.5% and capacity contracted 0.7% on a year-over-year basis.

AMR announced that domestic traffic increased 1.8% on a year-over-year basis thanks to 0.8% more capacity. International traffic gained 3.9% compared to a year ago, with capacity decreasing 3.1%.

Imagine how selected, better-performing airlines would be doing if the price of oil was $40, instead of roughly $80, as it is now? They'd be soaring, pun intended.

AMR Corp. (AMR), parent of American Airlines, first discussed here on June 22, 2009 at a price of $4.28, is poised to take advantage of a scaled-down U.S. airline sector.

Note of caution: American Airlines is a high-risk stock, not suitable for moderate-risk/low-risk investors. Don't buy AMR if you can't tolerate losing 50% of your position's value: it could happen.

A couple of days ago, my colleague Tom Johansmeyer reported that American Airlines (AMR) is going to start charging $8 for a pillow and a blanket on flights lasting more than two hours. Tom noted that AMR has become "about as low-rent as one could imagine." Well, get ready to hold an even lower opinion of AMR as late Wenesday it announced that it is going to start charging $50 for coach standby.

The airline announced that the only people able to fly standby for free starting February 22 will be "elite frequent fliers, travelers in first or business class, military personnel and people who bought pricey coach tickets." Anyone else switching flights on their day of travel will be paying $50 to get a "confirmed seat."

American Airlines (AMR) has become about as low-rent as one could imagine. I can stomach paying to check bags and for snacks. To me, it makes sense, as they provide important revenue streams and strike me as products and services for which it's possible to charge with little disruption to the passenger experience.

But, as of May 1, 2010, the airline will be charging $8 for a blanket and inflatable neck pillow on flights lasting more than two hours – including flights to Hawaii, Canada, Mexico, the Caribbean and Central America. But, for your trouble, American will toss in a $10 coupon towards a purchase of more than $30 from Bed Bath & Beyond (BBBY).

Of course, on flights lasting less than two hours, American's policy is BYO. If you want to stay warm, cram your own blanket into your carry-on.