MOST NOTEWORTHY: SunPower, Evergreen Solar and Abbott Lab were today's noteworthy initiations:

• Citigroup believes SunPower (NASDAQ: SPWR) is faced with high cell production costs, its silicon cost and installation cost advantages are increasingly commoditized and finds the risk/reward even at current levels. Shares were initiated with a Hold rating and $105 target.
  
• Citigroup believes Evergreen Solar (NASDAQ: ESLR) faces significant financing requirements over the next few years, making it difficult to see a sustained period of EPS growth beyond the $1 range. The firm sees downside to $5/share. Shares were assumed with a Sell rating and $8 target.
  
• UBS started Abbott Lab (NYSE: ABT) with a Buy rating and $61 target. The firm is positive on Humira potential growth and expects Xience to drive vascular operating margins to positive.

OTHER INITIATIONS:

• Lazard initiated Cree (NASDAQ: CREE) and Rubicon Tech (NASDAQ: RBCN) with Hold ratings.
  
• BMO Capital started Smith & Nephew (NYSE: SNN) with an Outperform rating and $70 target.

Volatility Index S&P 500 Options-VIX down 0.21 to 12.72

Genentech Inc. (NYSE:DNA) option volatility at all-time lows as news flows from Analyst day. DNA is recently down $3.06 to $82.22.
DNA is providing investors today with an overview of recent developments. DNA says it "aims to bring at least 20 new molecular entities into clinical development between 2006 and 2008." Bloomberg reported DNA that said Avastin lung cancer study was stopped for safety. DNA call option volume of 12,491 contracts compares to put volume of 11,435 contracts. DNA April option implied volatility of 20 is below its 26-week of 25 according to Track Data, suggesting decreasing price risks.

Abbott Laboratories (NYSE:ABT) option implied volatility flat as ABT near 5-year high into ACC 2007. ABT is recently at $54.28.
ABT has four business segments: Diagnostic Products, Nutritional Products, Pharmaceutical Products & Vascular Products. The American College of Cardiology annual meeting takes place in New Orleans, March 24-27. ABT overall option implied volatility of 18 near its 26-week average according to Track Data, suggesting non-directional risk.

Option volume leaders today are: Apple Inc. (NASDAQ:AAPL), Motorola Inc. (NYSE:MOT), Amgen Inc. (NASDAQ:AMGN) and Imclone Systems Inc. (NASDAQ:IMCL).

Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.