AMB Property (NYSE: AMB), a global developer and owner of industrial real estate, closed at $13.25 Wednesday. Goldman Sachs says: "We remain cautious on REITS." AMB December option implied volatility of 107 is above its 8-week average of 66 according to Track Data, suggesting larger price movement.

Essex Property Trust (NYSE: ESS), a REIT with the majority of real estate consisting of apartment communities, closed at $74.33 Wednesday. ESS December option implied volatility of 81 is above its 26-week average of 51 according to Track Data, suggesting larger price movement.

AvalonBay (NYSE: AVB), an owner or indirect owner of 178 apartment communities containing 50,370 apartment homes, closed at $55.03 Wednesday. AVB December option implied volatility of 83 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

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

MOST NOTEWORTHY: UBS AG, ProLogis, AMB Property, Navteq and PDL BioPharma were today's noteworthy upgrades:

• JP Morgan upgraded shares of UBS (NYSE: UBS) to Neutral from Underweight as they believe the company can start fresh after yesterday's pre-announcement.
  
• Banc of America upgraded shares of ProLogis (NYSE: PLD) and AMB Property (NYSE: AMB) to Buy from Neutral to reflect their positive outlook on global industrial REITs and believes they are positioned to benefit from global demand for industrial space.
  
• Navteq Corporation (NYSE: NVT) was upgraded at Deutsche Bank to Hold from Sell to reflect the acquisition by Nokia Corporation (NYSE: NOK).
  
• Wachovia raised shares of PDL BioPharma Inc (NASDAQ: PDLI) to Outperform from Market Perform following the CEO resignation and potential sale of the company.

OTHER UPGRADES:

• Thor Industries (NYSE: THO) was upgraded to Buy from Gradually Accumulate at Soleil.
  
• Gabelli upgraded Hershey Company (NYSE: HSY) to Hold from Sell.
  
• Forest Laboratories (NYSE: FRX) was upgraded at Citigroup to Hold from Sell.
  
• Roth Capital upgraded Conexant Systems (NASDAQ: CNXT) to Hold from Sell.

MOST NOTEWORTHY: Sonic Automotive (SAH), Hawaiian Electric (HE), AstraZeneca (AZN), AMB Property (AMB) and ProLogis (PLD) were today's noteworthy downgrades:

• Goldman downgraded Sonic Automotive (NYSE: SAH) to Neutral from Buy on valuation.

• Hawaiian Electric (NYSE: HE) was cut to Underweight from Equal Weight at Lehman based on valuation and the regulatory environment.

• AstraZeneca (NYSE: AZN) was downgraded to Equal Weight from Overweight at MorganStanley based on the reduced buyback, the $1.6B restructuring charge and potential for Nexium generics in Europe.

• Citigroup cut AMB Property (NYSE: AMB) and ProLogis (NYSE: PLD) to Sell from Hold citing the tight capital markets and the impact on costs for the downgrades...

OTHER DOWNGRADES:

• JP Morgan downgraded D.R. Horton (NYSE: DHI) to Neutral from Overweight.

• Roth Capital downgraded Century Casinos (NASDAQ: CNTY) to Hold from Buy.

• Keybanc downgraded shares of Diebold (NYSE: DBD) to Hold from Buy.

• DA Davidson cut Sunrise Senior Living (NYSE: SRZ) to Sell from Neutral.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).