Molycorp (MCP) February call option implied volatility is at 81, March calls are at 74 and June is at 66, compared to its 22-week average of 67, according to Track Data, suggesting larger near-term price movement.

Banco Santander (STD) rallied 4.2% on decreasing Spanish economic uncertainty. Overall option implied volatility of 41 is near its 26-week average of 43, according to Track Data, suggesting nondirectional price movement.

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

U.S. stock futures edged higher Wednesday morning as concerns about a global recovery eased somewhat following Chinese export data. Investors await the Federal Reserve Beige Book about the economy to be released this afternoon as they hope to extend Tuesday's late stage rally.

Overseas, world stock markets reversed course after a weak start Wednesday amid news the state-owned Agricultural Bank of China is readying a record-breaking initial public offering that is expected to raise between $23 billion and $30 billion. Also, Chinese exports jumped about 50% in May from a year earlier, sources told Reuters. Shanghai Composite Index advanced 2.8%. European shares were generally higher as well.

Analyst Upgrades

• RBC Capital upgraded FMC Technologies (FMC) to outperform from sector perform. The firm upgraded shares based on expectations that subsea order flow and backlog will be significantly higher than previous forecasts. The firm has a $70 target on shares.
• Citigroup upgraded ONEOK Partners LP (OKS) to buy from hold due to valuation and maintains a $65 price target on the stock.
• Needham upgraded Autodesk (ADSK) to buy from hold following the Q4 report and guidance. The firm has a $31 target on the stock.
• Morgan Stanley upgraded Under Armour (UA) to equal weight from underweight, citing valuation. The firm raised its target to $27 from $23.
• EOG Resources (EOG) was upgraded to buy from neutral at Goldman.
• FPL Group (FPL) was upgraded to outperform from neutral at Credit Suisse.
• Novo Nordisk (NVO) was upgraded to buy from hold at Jefferies.

A bank stock? To start the new investing year, 2010? Indeed you read correctly, but it has to be right bank, such as Spain-based Banco Santander SA (STD).

Banco San's compelling fundamentals: it will emerge from the financial crisis in good condition, bolstered by its: (1) large branch network, (2) strong customer deposit base, and (3) effective cost controls.